Are there golden trading windows in Asian stock markets during daily trading under Middle East conflicts? UBS has surprisingly made this discovery

Ask AI · What practical benefits does the gold window period recommended by UBS provide to investors?

China Financial News Agency (3月25, ) (Editor Ma Lan) Dramatic fluctuations in oil prices have driven global risk markets full of panic sentiment. Stocks, precious metals, and cryptocurrencies have all suffered sharp declines over the past few weeks, which has also caused some investors to lose heavily.

After analyzing the performance of six regional stock markets in the first week of March (i.e., the first trading week after the outbreak of the U.S.-Iran conflict), UBS Group recommended that, for Asian investors in a high-oil-price environment, they should buy and sell stocks as much as possible within the first few minutes of the trading day at the market open, then stay away from the market.

The bank’s electronic trading department analysis pointed out that after the outbreak of the U.S.-Iran conflict, trading volume in Asian stock markets was concentrated at the opening phase. The subsequent trade execution quality declined, the overall trading volume curve returned to historical average levels, and no market saw continuous intraday trading volume expansion after the market opened.

UBS also noted that after the outbreak of the conflict, not only did the market become increasingly dependent on news headlines, but the magnitude of market volatility also became increasingly large, with the number of intraday reversals in stock prices also increasing.

Time is money

UBS said that early-session trading in the Korean stock market was the most active. The benchmark index Kospi’s opening trading volume had at one point surged to 2.2 times the six-month average level, but as trading time progressed, trading volume fell significantly, with only some intermittent fluctuations around midday.

UBS emphasized that Kospi’s reaction was extremely concentrated: almost all substantive trades related to shocks in the price of Brent crude oil occurred right at the start of trading. The institution advised investors trading in the Korean market to limit trades to within the first five minutes after the opening, and to avoid any re-entry or noon-session position management.

Meanwhile, UBS also suggested that investors trade Japan’s Nikkei 225 index within the first 10 to 15 minutes of the trading session, and trade Australia’s benchmark equity index during the 15 to 25 minute window. For Chinese stocks, 9:25 to 9:40 in the morning is a key trading window after the market opens.

UBS also warned that although recent reports have suggested the U.S. and Iran may hold peace negotiations, unless a genuine solution is reached, energy prices and financial markets will still remain volatile.

(China Financial News Agency Ma Lan)