Asian markets today: Asian markets largely traded in green in early Tuesday, 23 June, while oil prices rebounded after the US lifted sanctions on Iran. At the same time, investors weighed growing expectations that the Federal Reserve could adopt a more aggressive stance on inflation later this year.
The broader Asia-Pacific equity gauge, MSCI’s benchmark index, also edged lower amid the cautious sentiment.
Japan’s market declined 0.5%, while S&P 500 e-mini futures edged down 0.2%. Meanwhile, Brent crude futures gained 0.2% to trade at $78.03 a barrel.
Japan’s Nikkei 225 slipped 0.6%, giving back part of its earlier gains despite data showing Japan’s manufacturing sector maintained strong momentum in June, with new orders expanding at their fastest rate in over four years.
South Korean equities swung between positive and negative territory before settling 2% lower, whereas Taiwanese shares opened 0.9% higher, reaching a fresh record high.
What’s driving Asian markets today?
The United States granted Iran a 60-day waiver permitting it to export oil to international markets, providing a crucial economic boost as both countries prepare for further talks aimed at securing a lasting peace agreement.
At the same time, US Vice President JD Vance characterized the initial round of negotiations with Iran as “very, very good,” claiming that Tehran had agreed to readmit nuclear inspectors. Iranian officials, while acknowledging progress in the discussions, disputed Vance’s statement, calling it inaccurate and saying it did not reflect the actual state of affairs.
According to Ulrike Hoffmann-Burchardi of UBS Chief Investment Office, geopolitical developments are expected to remain a significant driver of market volatility in the near term. In addition, changing investor perceptions about the sustainability of the AI-driven market rally could trigger further fluctuations.
Optimism surrounding a potential agreement, renewed enthusiasm for AI-related investments, and resilient corporate earnings have helped propel the S&P 500 Index 14% higher this quarter. Nevertheless, that performance lags the MSCI Asia Pacific Index, which has surged 26% over the same period.
US stock market update
US stock futures were largely unchanged on Monday night following a technology-led sell-off that weighed on broader market sentiment.
Futures linked to the S&P 500 edged down 0.1%, while Nasdaq 100 futures slipped 0.2%. Meanwhile, Dow Jones Industrial Average futures gained 22 points, or less than 0.1%.
In the regular trading session, weakness in technology stocks pushed the S&P 500 down 0.37%, while the tech-heavy Nasdaq Composite declined 1.32%. In contrast, a rise in shares of Caterpillar helped the Dow Jones Industrial Average advance 148.01 points, or 0.29%.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
