Asian markets today: Asian markets moved higher in early trade on Monday, 22 June, after a mixed start to the session.
Japan led gains, with the Nikkei 225 climbing 1.82% and the TOPIX advancing 1.28%. South Korea’s KOSPI opened 1.58% higher, while the small-cap KOSDAQ slipped 0.51%.
Australia’s S&P/ASX 200 edged up marginally. Meanwhile, futures for Hong Kong’s Hang Seng Index stood at 23,846, below the index’s previous close of 23,924.81, indicating a softer start for the market.
What’s driving Asian markets today?
The developments follow President Donald Trump’s warning on Sunday that the US could launch additional strikes on Iran if its leadership does not “immediately stop their highly paid proxies in Lebanon from causing trouble.” The statement came as Vice President JD Vance held the first round of talks with Iranian officials in Switzerland, after previously scheduled negotiations had been cancelled.
Meanwhile, oil prices advanced as uncertainty surrounding the Middle East conflict intensified. US West Texas Intermediate (WTI) crude futures rose nearly 3% to trade around $78 a barrel, while global benchmark Brent crude futures gained more than 1% to approximately $81 per barrel.
Investors across Asia will closely watch China’s benchmark lending rates on Monday amid indications that the country’s economic momentum is weakening. The loan prime rates are expected to stay unchanged, with resilience from robust exports and the ongoing AI-driven growth likely easing the need for additional economic stimulus, according to Bloomberg Economics.
US stock market update
The three major US stock indexes rebounded on Thursday following Wednesday’s sell-off, which had been driven by investor concerns over the future path of monetary policy. The recovery, supported largely by gains in semiconductor stocks, enabled the benchmarks to end the shortened trading week in positive territory.
The S&P 500 climbed nearly 1% for the week, marking its 11th gain in the past 12 weeks. The Dow Jones Industrial Average also advanced almost 1%, while the Nasdaq Composite posted a gain of more than 2%. US markets remained closed on Friday in observance of the Juneteenth holiday.
A major focus for markets this week will be Thursday’s release of the May personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
After the Federal Reserve’s hawkish policy meeting last week, market participants are expecting a potential interest rate hike to as early as October. As a result, investors are closely monitoring inflation data for signs that the US central bank could be moving closer to tightening monetary policy.
(With inputs from agencies)
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