AUS
NZ
UK
CA
USA
IND
Highlights
Asia-Pacific equities gained as Trump-brokered ceasefire lifted regional sentiment
Australia’s soft CPI outcome draws attention ahead of RBA's next steps
Market caution persists despite tech-led rally on Wall Street
Equities across Asia traded with modest strength, buoyed by improving risk sentiment after a phased ceasefire agreement was announced between Israel and Iran. Market participants responded to the diplomatic breakthrough with cautious optimism, as attention turned toward economic cues from Australia and Japan.
In Australia, the ASX 200 posted a marginal increase, supported by broader strength in energy and resources but tempered by subdued reactions to inflation data and lingering global uncertainty.
Australia’s CPI Slows, Raising Policy Room for Central Bank
Investors closely tracked the country’s latest inflation reading, which showed a softer-than-expected consumer price increase for May. Core inflation also eased to a multi-year low, increasing speculation over the monetary stance of the Reserve Bank of Australia.
While the CPI results hinted at easing price pressures, the muted market response reflected a wait-and-see approach among traders, especially as global uncertainties continue to weigh on decision-making across asset classes.
Wall Street Momentum Lends Support to Asian Benchmarks
Major Wall Street indices ended firmly higher in the previous session, led by gains in technology shares. The Nasdaq Composite outperformed, which contributed to upward momentum across Asia-Pacific bourses during the trading day.
Geopolitical Focus Shifts to Ceasefire Developments
The ceasefire announcement brokered by former U.S. President Donald Trump between Israel and Iran injected cautious optimism into global markets. Though initial hopes were high, skepticism soon followed due to concerns over compliance and future stability.
Regional benchmarks including Hong Kong’s Hang Seng, South Korea’s KOSPI, and Singapore’s Straits Times Index all posted gains. Meanwhile, Chinese indices such as the Shanghai Composite and CSI 300 showed limited movement as focus remained on broader trade dynamics and policy signals.
Japanese Outlook Mixed Amid Economic Policy Review
Japan’s latest Bank of Japan meeting summary revealed a divided outlook among policymakers, with some in favor of maintaining interest rates due to external pressures, while others flagged persistently high inflation as a driver for policy tightening.
The Nikkei 225 was largely unchanged, while the broader TOPIX index slipped slightly, reflecting mixed investor sentiment around economic policy direction and export-oriented risk factors.
