Asia Shares Hesitate as Gulf Tensions Persist
Asia Shares Hesitate as Gulf Tensions Persist
Asian shares turned cautious on Thursday after a fresh U.S. military strike in Iran dampened hopes for a near-term peace deal. Oil prices bounced 2% and Treasury yields edged higher.
Markets Cautious
Japan's Nikkei fell 0.2%, South Korea's KOSPI was flat. MSCI's broadest index of Asia-Pacific shares dipped 0.1%. S&P 500 and Nasdaq futures added 0.1%.
Oil Prices Rise
Brent crude rebounded 2.3% to $96.50 a barrel, while U.S. crude added 2.2% to $90.59. Transits of the Strait of Hormuz remain at a trickle.
Inflation Data in Focus
U.S. core PCE inflation is expected to rise 0.3% to an annual 3.3%, well above the Fed's 2% target. Markets imply a 50-50 chance of a quarter-point rate hike by year-end.
Dollar Strengthens
The dollar index traded at 99.291. The dollar crept to a four-week top on the yen at 159.57, nearing the 160.00 barrier. The euro was a shade lower at $1.1620.
Gold Eases
Gold eased 0.3% to $4,445 an ounce, with limited safe-haven demand.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
United States 10 Year Government Bonds Yield
Higher oil prices lifted inflation expectations, pushing yields up. Moderate impact.
Oil prices rose 2% due to US strike on Iran and uncertainty over Strait of Hormuz. Directly impacted commodity.
Japan 225 Index
Nikkei dipped 0.2% due to geopolitical risks and cautious sentiment. Limited impact.
KOSPI Composite Index
KOSPI was flat with no direct impact from the news. Weak sectoral link.
EUROSTOXX 50 futures slipped 0.2% due to geopolitical risks and inflation concerns. Indirect impact.
DAX futures slipped 0.2% due to geopolitical risks and inflation concerns. Indirect impact.
FTSE futures lost 0.3% due to geopolitical risks and inflation concerns. Indirect impact.
S&P 500 futures edged up 0.1%, no clear direction from the news. Awaiting PCE data.
Nasdaq futures added 0.1%, tech stocks had limited impact from geopolitical news.
U.S. Dollar Currency Index
Dollar index supported by Fed tightening expectations and geopolitical uncertainty. Moderate impact.
US Dollar/Japanese Yen
USD/JPY rose to four-week high near 160, driven by rate differential and safe-haven demand. Moderate impact.
Euro/US Dollar
EUR/USD edged lower; ECB expected to hike in June but geopolitical risks weigh on euro. Limited impact.
GOLD (US$/OZ)
Gold eased 0.3% as safe-haven demand remained limited despite geopolitical risks. Inflation concerns did not support.
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