Asian Stocks Retreat, Oil Steady as Iran Deal Stalls
Asian stocks fell from record highs on Tuesday (June 2), while oil prices held steady after an earlier rally, as markets saw efforts to revive the US-Iran peace deal show no clear progress. The MSCI Asia Pacific Index fell 0.9% after closing at an all-time high on Monday, with Japanese, Australian, and South Korean stocks all falling.
In the US, S&P 500 futures fell 0.2% and the Nasdaq 100 fell 0.4%, signaling that risk-on sentiment is starting to hit new highs on Wall Street. Although Trump said talks with Iran were progressing quickly, conflicting signals left markets doubting whether the diplomatic path was truly moving toward a workable outcome.
Oil prices were a major drag on sentiment. Brent was flat at around US$95/barrel after surging in the previous session on reports Tehran had suspended talks in protest of Israeli attacks in Lebanon. The oil rally kept concerns about energy inflation alive, prompting markets to re-price the risk of higher interest rates remaining for longer.
Gold held steady around US$4,485/oz, while US bonds were under pressure in the previous session as the deadlock in negotiations raised concerns that energy costs would drive inflation and force the Fed to tighten. While the AI theme continues to underpin equities, geopolitical headlines make markets volatile, as the path of inflation and interest rates once again hinges on the direction of energy.
In corporates, the AI narrative remains dominant: Alphabet announced a major fundraising plan for AI infrastructure spending, while Hewlett Packard Enterprise surged strongly after its sales outlook was boosted by demand for AI-powered servers and networks. However, the dollar strengthened after ISM data showed US manufacturing expanded at the fastest pace in four years and input cost pressures remained high, leaving investors looking to this week's data—culminating in Friday's jobs report—for a read on the Fed's policy direction under new Chairman Kevin Warsh.
5 key points:
- MSCI Asia Pacific fell 0.9% after a record high, led by declines in Japan, Australia, and South Korea.
- US futures weakened (S&P 500 -0.2%; Nasdaq 100 -0.4%) as signals on the Iran deal remained unclear.
- Brent held around US$95; oil rally kept concerns about energy inflation and interest rates at bay.
- Gold held steady around US$4,485; bond markets were sensitive to inflation risks and the Fed's direction.
- The AI theme continued to support stocks, but strong US data strengthened the dollar and shifted focus to the NFP data. (asd)
Sumber: Newsmaker.id
