After Ceasefire, What Caused Asian Markets to Suddenly Break Direction?
Asian stock markets opened cautiously on Wednesday (25/06) after a big rally on the Israel-Iran ceasefire. The MSCI index of Asian stocks barely moved, following more than 2% the day before when US President Donald Trump announced the ceasefire. US stock futures were also flat, while the S&P 500 and Nasdaq 100 hit new record highs.
Market players are starting to focus on the direction of US interest rate policy. Fed Chairman Jerome Powell said there is no urgency to cut interest rates, but he is keeping the option of a cut open if inflation remains under control. However, several Fed officials have given different views—some favoring a quick cut, while others want to wait for further economic data.
Geopolitical concerns remain. Iran and Israel appear to be respecting the ceasefire, but President Trump has lashed out at both sides for alleged early violations. In a surprising move, Trump also gave China the green light to continue buying oil from Iran, which could have an impact on global oil prices and regional stability.
Meanwhile, investors are also looking ahead to Australian inflation data and the Bank of Thailand's interest rate decision. South Korea is in an evolution after failing to make the MSCI's developed market upgrade. All of these factors are keeping Asian markets cautious, with sentiment mixed between peaceful optimism and a lift in the global economy.(ayu)
Source: Newsmaker
