Market Update
Fragile U.S.-Iran Ceasefire Keeps Stock and Energy Markets On Edge
Barry Adams
29 Jun, 2026
New York City
Wall Street indexes advanced in Monday's trading, and investors reassessed the latest pause in hostilities between the U.S. and Iran.
Over the weekend, the U.S. and Iran exchanged fire over the Strait of Hormuz that threatened to derail negotiations in search of lasting peace.
Uncertainty over the Middle East oil supplies through the Strait of Hormuz remained high amid growing skepticism that the U.S. and Iran could agree on a durable peace agreement.
The U.S. president promised to end the war in the Middle East in less than four weeks, but after four months there are no signs of ending hostilities in the region.
Moreover, crude oil inventories in China, Japan, and India are running at and approaching historic low levels, raising fears that tighter supply conditions are likely to persist in the second half of this year.
For now, the U.S. and Iran paused hostilities and allowed commercial ships to sail freely through the narrow passageway on Monday following a weekend of air strikes in southern Iran, Kuwait, and Bahrain.
AI-related chip stocks rebounded in Monday's trading, and Arm Holdings increased 2.2%, Marvell Technology gained 2.4%, and Intel advanced 1.7%.
Across the Atlantic, European stock markets traded down in volatile trading as investors sold off defense-related stocks for the second consecutive week.
In Asia, benchmark indexes in Japan erased most of the session's early losses and, in Hong Kong, gained more than 1.5% in Monday's trading.
A global rout in technology stocks intensified as the week progressed, but losses were capped following a decline in crude oil prices at the end of last week.
After a week of wild swings, the S&P 500 index decreased 2%, and the Nasdaq Composite declined 4.6%, with Alphabet, Nvidia, Intel, and Broadcom losing between 8% and 11% amid growing concerns over the stretched AI valuations, sustainability of AI infrastructure spending, and lack of earnings visibility for key AI players.
The weakness in tech stocks dragged down broader indexes in Japan, South Korea, Taiwan, and Europe.
Fragile U.S.-Iran Ceasefire Keeps Stock and Energy Markets On Edge
Barry Adams
29 Jun, 2026
New York City
Wall Street indexes advanced in Monday's trading, and investors reassessed the latest pause in hostilities between the U.S. and Iran.
Over the weekend, the U.S. and Iran exchanged fire over the Strait of Hormuz that threatened to derail negotiations in search of lasting peace.
Uncertainty over the Middle East oil supplies through the Strait of Hormuz remained high amid growing skepticism that the U.S. and Iran could agree on a durable peace agreement.
The U.S. president promised to end the war in the Middle East in less than four weeks, but after four months there are no signs of ending hostilities in the region.
Moreover, crude oil inventories in China, Japan, and India are running at and approaching historic low levels, raising fears that tighter supply conditions are likely to persist in the second half of this year.
For now, the U.S. and Iran paused hostilities and allowed commercial ships to sail freely through the narrow passageway on Monday following a weekend of air strikes in southern Iran, Kuwait, and Bahrain.
AI-related chip stocks rebounded in Monday's trading, and Arm Holdings increased 2.2%, Marvell Technology gained 2.4%, and Intel advanced 1.7%.
Across the Atlantic, European stock markets traded down in volatile trading as investors sold off defense-related stocks for the second consecutive week.
In Asia, benchmark indexes in Japan erased most of the session's early losses and, in Hong Kong, gained more than 1.5% in Monday's trading.
A global rout in technology stocks intensified as the week progressed, but losses were capped following a decline in crude oil prices at the end of last week.
After a week of wild swings, the S&P 500 index decreased 2%, and the Nasdaq Composite declined 4.6%, with Alphabet, Nvidia, Intel, and Broadcom losing between 8% and 11% amid growing concerns over the stretched AI valuations, sustainability of AI infrastructure spending, and lack of earnings visibility for key AI players.
The weakness in tech stocks dragged down broader indexes in Japan, South Korea, Taiwan, and Europe.
Japan's Retail Sales Growth Accelerated, Toyota's Global Sales Dropped In May
Akira Ito
29 Jun, 2026
Tokyo
Japan's benchmark indexes dropped in Monday's trading amid renewed clashes between the U.S. and Iran around the Strait of Hormuz.
The Nikkei 225 decreased more than 1%, and the broader TOPIX decreased 0.4%, and the yen weakened to 161.79 against the U.S. dollar.
International crude oil prices hovered around $72 a barrel after U.S. and Iran exchanged fire over the weekend, but both sides agreed to cease hostilities ahead of the next round of talks later this week in Doha, Qatar.
Closer to home, Japan's retail sales rose for the third consecutive month in May, driven by the government's stimulus plan and rising wages.
Retail sales increase accelerated to an annual pace of 5.3% from the upwardly revised 2.8% in the previous month, according to a report released by the Ministry of Economy, Trade, and Industry.
Sales of automobiles soared 23.7%, machinery and equipment surged 14.5%, department stores increased 6.9%, and food and beverages inched higher by 2.4%.
However, non-store sales decreased 4.2%, fuel declined 2.6%, and apparel and personal goods inched lower by 0.7%.
On a monthly basis, retail sales increased 1.9%, slower than the upwardly revised 2.1% in April, which was the fastest increase in four months.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.1%, and the broader TOPIX declined 0.4% to 3,947.12.
Semiconductor- and AI-linked stocks eased on Monday amid growing worries that the elevated level of investment in artificial intelligence infrastructure is not sustainable.
Kioxia Holdings decreased 6.1% to ¥86,470.0, SoftBank Group fell 5.1% to ¥5,905.0, Tokyo Electron edged up 1.5% to ¥74,060.0, and Advantest Corp. dropped 1.7% to ¥31,860.0.
Sumitomo Mitsui Financial decreased 1% to ¥6,327.0, Mitsubishi UFJ Financial dropped 1.5% to ¥3,195.0, and Mizuho Financial declined 1.4% to ¥7,689.0.
Nippon Yusen decreased 1.5% to ¥5,184.0, Mitsui OSK Lines added 0.5% to ¥5,243.0, and Kawasaki Kisen Kaisha fell 0.6% to ¥2,445.50.
Toyota Motor Corp declined 0.5% to ¥2,755.50, and the vehicle maker said its global sales in May declined 7.2% from a year ago to 834,279 units.
Global sales decreased for the fourth consecutive month, largely because of the sluggish demand in China amid the Middle East conflict.
Toyota's exports to the Middle East plunged 66% to 7,323, declining for the fourth consecutive month because of the supply disruptions following the regional conflict.
Japan's Retail Sales Growth Accelerated, Toyota's Global Sales Dropped In May
Akira Ito
29 Jun, 2026
Tokyo
Japan's benchmark indexes dropped in Monday's trading amid renewed clashes between the U.S. and Iran around the Strait of Hormuz.
The Nikkei 225 decreased more than 1%, and the broader TOPIX decreased 0.4%, and the yen weakened to 161.79 against the U.S. dollar.
International crude oil prices hovered around $72 a barrel after U.S. and Iran exchanged fire over the weekend, but both sides agreed to cease hostilities ahead of the next round of talks later this week in Doha, Qatar.
Closer to home, Japan's retail sales rose for the third consecutive month in May, driven by the government's stimulus plan and rising wages.
Retail sales increase accelerated to an annual pace of 5.3% from the upwardly revised 2.8% in the previous month, according to a report released by the Ministry of Economy, Trade, and Industry.
Sales of automobiles soared 23.7%, machinery and equipment surged 14.5%, department stores increased 6.9%, and food and beverages inched higher by 2.4%.
However, non-store sales decreased 4.2%, fuel declined 2.6%, and apparel and personal goods inched lower by 0.7%.
On a monthly basis, retail sales increased 1.9%, slower than the upwardly revised 2.1% in April, which was the fastest increase in four months.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.1%, and the broader TOPIX declined 0.4% to 3,947.12.
Semiconductor- and AI-linked stocks eased on Monday amid growing worries that the elevated level of investment in artificial intelligence infrastructure is not sustainable.
Kioxia Holdings decreased 6.1% to ¥86,470.0, SoftBank Group fell 5.1% to ¥5,905.0, Tokyo Electron edged up 1.5% to ¥74,060.0, and Advantest Corp. dropped 1.7% to ¥31,860.0.
Sumitomo Mitsui Financial decreased 1% to ¥6,327.0, Mitsubishi UFJ Financial dropped 1.5% to ¥3,195.0, and Mizuho Financial declined 1.4% to ¥7,689.0.
Nippon Yusen decreased 1.5% to ¥5,184.0, Mitsui OSK Lines added 0.5% to ¥5,243.0, and Kawasaki Kisen Kaisha fell 0.6% to ¥2,445.50.
Toyota Motor Corp declined 0.5% to ¥2,755.50, and the vehicle maker said its global sales in May declined 7.2% from a year ago to 834,279 units.
Global sales decreased for the fourth consecutive month, largely because of the sluggish demand in China amid the Middle East conflict.
Toyota's exports to the Middle East plunged 66% to 7,323, declining for the fourth consecutive month because of the supply disruptions following the regional conflict.
China Indexes Edged Higher Overlooking Escalating Tensions In Middle East
Li Chen
29 Jun, 2026
Hong Kong
China's benchmark indexes turned higher at the start of a new week, and tensions in the Middle East escalated.
The Hang Seng Index increased 2.1%, and the mainland-focused CSI 300 Index edged up 0.6%, overlooking renewed tensions in the Middle East.
Iran stepped up its missile and drone strikes against Bahrain and Kuwait, retaliating for the fresh U.S. attacks on targets in southern Iran.
The renewed attacks raised new uncertainty over the resumption of commercial shipments in the Strait of Hormuz, despite both countries agreeing to cease hostilities and resume security talks.
China's industrial profit for the period between January and May surged at an annual pace of 18.8% to 3.1 trillion yuan, accelerating from the 18.2% rise in the period between January and April, according to the National Bureau of Statistics.
Later this week, investors are anticipating the release of business surveys, which will offer further insights into the health of the world's second-largest economy.
In Friday's trading, European markets closed down around 0.3%, and benchmark indexes in New York edged lower by a fraction amid growing concerns that massive spending for the AI infrastructure may not deliver expected returns.
China Indexes and Stocks
The Hang Seng Index increased 2.1% to 23,153.89, and the mainland-focused CSI 300 Index added 0.6% to 4,871.03.
Industrial and Commercial Bank of China added 0.5%, Agriculture Bank of China increased 1.1%, and China Construction Bank increased 0.6%.
NAURA Technology decreased 0.8%, Semiconductor Manufacturing International added 1.9%, and Knowledge Atlas Technology fell 2.7%.
China Indexes Edged Higher Overlooking Escalating Tensions In Middle East
Li Chen
29 Jun, 2026
Hong Kong
China's benchmark indexes turned higher at the start of a new week, and tensions in the Middle East escalated.
The Hang Seng Index increased 2.1%, and the mainland-focused CSI 300 Index edged up 0.6%, overlooking renewed tensions in the Middle East.
Iran stepped up its missile and drone strikes against Bahrain and Kuwait, retaliating for the fresh U.S. attacks on targets in southern Iran.
The renewed attacks raised new uncertainty over the resumption of commercial shipments in the Strait of Hormuz, despite both countries agreeing to cease hostilities and resume security talks.
Investors are anticipating the release of business surveys later this week, which will offer further insights into the health of the world's second-largest economy.
In Friday's trading, European markets closed down around 0.3%, and benchmark indexes in New York edged lower by a fraction amid growing concerns that massive spending for the AI infrastructure may not deliver expected returns.
China Indexes and Stocks
The Hang Seng Index increased 2.1% to 23,153.89, and the mainland-focused CSI 300 Index added 0.6% to 4,871.03.
Industrial and Commercial Bank of China added 0.5%, Agriculture Bank of China increased 1.1%, and China Construction Bank increased 0.6%.
NAURA Technology decreased 0.8%, Semiconductor Manufacturing International added 1.9%, and Knowledge Atlas Technology fell 2.7%.
Japan Stocks Fall On Tech Losses, Tokyo Inflation Stays Below BoJ's Target Rate
Akira Ito
26 Jun, 2026
Tokyo
Japan's indexes erased gains from the previous session on Friday, and benchmark indexes closed down for a week amid rising concerns over the sustainability of the elevated level of AI infrastructure spending.
The Nikkei 225 Stock Average decreased 4.3%, the broader TOPIX declined 1.6%, and the Japanese yen traded at 161.56 against the U.S. dollar.
For the week, the Nikkei 225 stock average declined 3.6%, and the broader TOPIX fell 2.6%.
The yen continued to hover near a four-decade low, supporting the case for an intervention from the ministry of finance and the Bank of Japan as policymakers struggle to contain the fall of the currency despite higher interest rates.
Brent crude oil prices decreased 1.9% to $74.13 a barrel amid improving shipping activity through the Strait of Hormuz and easing supply conditions for the import-dependent Japan.
Tokyo-Area Core Inflation Accelerated to 3-Month High In June
Tokyo-area's core and overall annual inflation accelerated in June from May amid broadening price pressures since the start of the Middle East conflict.
Investors closely watch the Tokyo area's inflation, as the measure of price change is deemed a reliable signal for price trends in the broader economy of Japan.
Overall inflation increased to 1.7% from 1.4% in May, and core inflation, which excludes energy prices, advanced to an annual rate of 1.6% from 1.3% in the previous month, according to a report released by the Statistics Bureau of Japan.
However, core inflation remained below the central bank's 2% target rate for the fifth consecutive month and overall inflation for the sixth consecutive month.
Favorable base effects and energy subsidies kept in check the impact of higher raw material costs linked to the Middle East conflict.
The core-core rate of inflation, which excludes food and energy prices, accelerated to 1.9% in June from May, confirming rising inflationary pressures in the broader economy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 4.5% to 69,093.82, and the broader TOPIX dropped 1.4% to 69,093.82.
AI- and semiconductor-linked stocks led decliners in Friday's trading in Tokyo, reversing the previous session's sharp gains, driven by a surge in memory-related stocks.
SoftBank Group dropped 13% to ¥6,186.0, Kioxia Holdings declined 11.6% to ¥91,710.0, and Taiyo Yuden decreased 12.9% to ¥16,375.0, and Furukawa Electric eased 8.5% to ¥45,520.0.
Japan Stocks Fall On Tech Losses, Tokyo Inflation Stays Below BoJ's Target Rate
Akira Ito
26 Jun, 2026
Tokyo
Japan's indexes erased gains from the previous session on Friday, and benchmark indexes closed down for a week amid rising concerns over the sustainability of the elevated level of AI infrastructure spending.
The Nikkei 225 Stock Average decreased 4.3%, the broader TOPIX declined 1.6%, and the Japanese yen traded at 161.56 against the U.S. dollar.
For the week, the Nikkei 225 stock average declined 3.6%, and the broader TOPIX fell 2.6%.
The yen continued to hover near a four-decade low, supporting the case for an intervention from the ministry of finance and the Bank of Japan as policymakers struggle to contain the fall of the currency despite higher interest rates.
Brent crude oil prices decreased 1.9% to $74.13 a barrel amid improving shipping activity through the Strait of Hormuz and easing supply conditions for the import-dependent Japan.
Tokyo-Area Core Inflation Accelerated to 3-Month High In June
Tokyo-area's core and overall annual inflation accelerated in June from May amid broadening price pressures since the start of the Middle East conflict.
Investors closely watch the Tokyo area's inflation, as the measure of price change is deemed a reliable signal for price trends in the broader economy of Japan.
Overall inflation increased to 1.7% from 1.4% in May, and core inflation, which excludes energy prices, advanced to an annual rate of 1.6% from 1.3% in the previous month, according to a report released by the Statistics Bureau of Japan.
However, core inflation remained below the central bank's 2% target rate for the fifth consecutive month and overall inflation for the sixth consecutive month.
Favorable base effects and energy subsidies kept in check the impact of higher raw material costs linked to the Middle East conflict.
The core-core rate of inflation, which excludes food and energy prices, accelerated to 1.9% in June from May, confirming rising inflationary pressures in the broader economy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 4.5% to 69,093.82, and the broader TOPIX dropped 1.4% to 69,093.82.
AI- and semiconductor-linked stocks led decliners in Friday's trading in Tokyo, reversing the previous session's sharp gains, driven by a surge in memory-related stocks.
SoftBank Group dropped 13% to ¥6,186.0, Kioxia Holdings declined 11.6% to ¥91,710.0, and Taiyo Yuden decreased 12.9% to ¥16,375.0, and Furukawa Electric eased 8.5% to ¥45,520.0.
China's Indexes Register Sharp Losses Amid Global AI Rout
Li Chen
26 Jun, 2026
Hong Kong
China's benchmark indexes faced selling pressure amid an Asia-wide decline, driven by a sharp sell-off in AI- and semiconductor-related stocks.
The Hang Seng Index decreased 2.6%, and the mainland-focused CSI 300 Index fell 2.8% as investors questioned the level of return on investment in AI infrastructure.
The market rally in the previous session quickly faded as investors grew wary of the cost of building AI data centers and uncertain returns on investment.
For the week, the Hang Seng Index dropped nearly 5%, and the CSI 300 Index declined 1.4% amid growing concerns over AI valuation and lagging returns.
The market sell-off across Asia dragged down the Nikkei 225 stock average by 4.4% and the Kospi by 7.6%, and they declined 3.6% and 8% in the week, respectively.
Brent crude oil prices decreased 2% to $73.76 a barrel, and about 20 oil tankers passed through the Strait of Hormuz and eased concerns over the supply in global markets.
On the economic front, China's fiscal spending in the five months to May rose 0.8% to 11.4 trillion yuan, or $1.6 trillion, according to the latest data from the finance ministry.
The central government's steady spending provided economic support for the heavy industries and defense-related expenditures.
Central government spending increased 6.5% to 1.7 trillion yuan, while local government spending inched lower 0.1% to 9.7 trillion yuan.
China Indexes and Stocks
The Hang Seng Index decreased 2.6% to 22,557.37. The mainland-focused CSI 300 Index also dropped 2.8%, reaching 4,878.74.
The steep decline in AI-related stocks dragged down semiconductor stocks, AI model makers, and infrastructure developers.
Knowledge Atlas Technology dropped 10% to HK$2,098.0, MiniMax Group fell 8.4%, and SMIC decreased 6.5% to $80.35.
Lingyi iTech (Guangdong) Co. rose as much as 6% to HK$11.80 before settling at HK$11.45, below its offer price of HK$10.18, and the precision parts maker and Apple supplier completed its Hong Kong listing.
China's Indexes Register Sharp Losses Amid Global AI Rout
Li Chen
26 Jun, 2026
Hong Kong
China's benchmark indexes faced selling pressure amid an Asia-wide decline, driven by a sharp sell-off in AI- and semiconductor-related stocks.
The Hang Seng Index decreased 2.6%, and the mainland-focused CSI 300 Index fell 2.8% as investors questioned the level of return on investment in AI infrastructure.
The market rally in the previous session quickly faded as investors grew wary of the cost of building AI data centers and uncertain returns on investment.
For the week, the Hang Seng Index dropped nearly 5%, and the CSI 300 Index declined 1.4% amid growing concerns over AI valuation and lagging returns.
The market sell-off across Asia dragged down the Nikkei 225 stock average by 4.4% and the Kospi by 7.6%, and they declined 3.6% and 8% in the week, respectively.
Brent crude oil prices decreased 2% to $73.76 a barrel, and about 20 oil tankers passed through the Strait of Hormuz and eased concerns over the supply in global markets.
On the economic front, China's fiscal spending in the five months to May rose 0.8% to 11.4 trillion yuan, or $1.6 trillion, according to the latest data from the finance ministry.
The central government's steady spending provided economic support for the heavy industries and defense-related expenditures.
Central government spending increased 6.5% to 1.7 trillion yuan, while local government spending inched lower 0.1% to 9.7 trillion yuan.
China Indexes and Stocks
The Hang Seng Index decreased 2.6% to 22,557.37. The mainland-focused CSI 300 Index also dropped 2.8%, reaching 4,878.74.
The steep decline in AI-related stocks dragged down semiconductor stocks, AI model makers, and infrastructure developers.
Knowledge Atlas Technology dropped 10% to HK$2,098.0, MiniMax Group fell 8.4%, and SMIC decreased 6.5% to $80.35.
Lingyi iTech (Guangdong) Co. rose as much as 6% to HK$11.80 before settling at HK$11.45, below its offer price of HK$10.18, and the precision parts maker and Apple supplier completed its Hong Kong listing.