“Given how quickly things were escalating last week, the developments over the weekend are a move in the positive direction,” said Brussels-based Vivek Dhawan, a fund manager at Candriam. “The focus could return to the Indian growth story.”
Stocks in Pakistan and India rallied as a ceasefire agreement between the two nuclear-armed neighbours calmed markets that had been shaken by military clashes on their border.
Pakistan’s stock benchmark KSE-30 Index closed 9.3% higher, the most since 2008, in a rally that triggered an hour-long trading halt. The NSE Nifty 50 Index rose 3.8% in Mumbai, as both nations stepped back from the brink of war, allowing market participants to turn their focus back to the economic outlook for the South Asian nations. The sentiment also got a boost from the announcement of a temporary trade deal between the US and China.
