India and Pakistan stock markets both surge, with market focus shifting to economic fundamentals after ceasefire.

Stock markets in India and Pakistan both rose, as the two countries unexpectedly reached a ceasefire agreement over the weekend, shifting investors' attention back to improving economic prospects. India's NSE Nifty 50 index surged 3%, marking its biggest gain in nearly a year, with investors welcoming the pullback from the brink of war and ceasefire agreement between India and Pakistan. Pakistan's benchmark KSE-30 index skyrocketed 9.2%, its biggest rise since 2008. "Given the pace of escalation last week, the weekend developments are a positive step," said Candriam fund manager Vivek Dhawan. "The focus may now return to India's growth narrative." In Pakistan, traders are expecting economic reform in the country to once again become the focus. The International Monetary Fund approved a $1 billion emergency funding and a $1.4 billion new climate adaptation program last Friday, which will support Pakistan's fragile finances.