Global Stocks Seesaw Amid Geopolitical Tensions and Economic Concerns

Global markets faced a tumultuous ride on Wednesday, with Asian stocks rising while the U.S. dollar came under substantial pressure. Investors expressed anxiety over fiscal stability, trade developments, and renewed geopolitical tensions in the Middle East, particularly following reports of potential Israeli action against Iran.

The fragility in investor sentiment was exacerbated after Moody's downgrade of the U.S. credit rating, highlighting significant concerns surrounding the nation's substantial debt load. Concurrently, President Trump's proposed tax cuts loomed large, raising potential debt increments. Trade talks also stagnated, leaving U.S. policies in limbo.

As stocks wavered, safe haven currencies like the yen and Swiss franc flourished, underscoring a strategic shift in capital allocation. Meanwhile, the delicate balance between stimulus funding and monetary policy normalisation in Japan remained at the forefront, as investors awaited signals from ongoing global finance meetings.

(With inputs from agencies.)