Asian stocks stabilize as geopolitical tensions ease, dollar gains ground

Asian markets demonstrated steadiness across major indices as risk sentiment improved in early trading. Japan's Nikkei 225 led regional gains, advancing 2.5 percent, while South Korean equities posted modest increases. The recovery reflected easing anxiety over recent AI-sector turbulence and a pullback in geopolitical tensions that had weighed on investor confidence in previous sessions.

The dollar maintained its firmness throughout the session, supported by market expectations surrounding the Federal Reserve's monetary policy stance. Investors continued to price in the likelihood of elevated interest rates in the near term, bolstering demand for US currency among regional traders and portfolio managers.

Market participants remained cautious despite the day's positive momentum, with analysts noting that underlying economic data and central bank communications would likely dictate sentiment in coming sessions. The modest gains underscored a market attempting to find equilibrium after volatility tied to technology sector movements and international developments.

For Singapore investors and regional fund managers, the stabilization offered some respite, though broader economic headwinds and the trajectory of US monetary policy continued to influence asset allocation decisions across the region.