Inflation worries kept investors cautious even as bonds and stocks rallied on Monday after a US-Iran interim deal eased nerves, with market participants warning that the conflict’s economic fallout remains unresolved.

The MSCI Asia Pacific Index climbed as much as 3.2%, while Brent crude, 10-Year Treasury yields and the dollar declined. Yet, strategists at KCM Trade, Pepperstone Group Ltd. and Stifel Nicolaus said the agreement is more likely to create a short-term trading opportunity than mark the start of a longer-term rally.