[MARKET ANALYSIS] Asia-Pac stocks shrugged off the escalation and reclosure in Hormuz

APAC Stocks: Positive

• Asia-Pac stocks are mostly higher as the region shrugs off the escalatory geopolitical headlines from over the weekend, including the reclosure of the Strait of Hormuz and attacks on several vessels by Iran, while US President Trump announced that the US Navy intercepted an Iranian-flagged vessel and blew a hole in the engine room after it attempted to get past the US blockade. This resulted in a spike in oil prices at the reopen and saw US index futures decline, although asset classes have faded the extremes as focus turns to talks in Islamabad, with President Trump sending negotiators for talks with Iran, although there is no confirmation yet on whether Iran will attend.

ASX 200: Flat

• Trades little changed amid the mixed price action in commodity-related stocks and with financials subdued after NAB flagged a spike in impairments due to the Middle East conflict.

Nikkei 225: +1.1%

• Rallied with the index returning to the 59,000 level following the recent unwinding of April rate hike bets, and with the index unfazed by the rise in oil prices.

Hang Seng & Shanghai Comp: Hang Seng +0.6% / Shanghai Comp +0.8%

• Chinese markets are higher amid earnings updates, but with further upside capped by a lack of macro catalysts, while the PBoC provided no surprises as it announced China's benchmark LPRs were maintained at their current levels for the eleventh consecutive month.

US Equity Futures: Lower

• Declined at the reopen as the escalation in Hormuz over the weekend spooked sentiment, but have since pared around half of the initial declines as asset classes pared the early extremes and Asia-Pac shrugged off the geopolitical headlines.

European Equity Futures -1.1%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 1.1% after the cash market closed with gains of 2.1% on Friday.