Asia stocks steady.
Most Asian stocks moved little on Monday as a sustained conflict between Iran and Israel kept risk appetite on the backfoot, as did anticipation of a barrage of central bank meetings this week.
Mixed economic readings from China kept local stocks trading sideways.
Regional markets took middling cues from a largely negative session on Wall Street, as the conflict in the Middle East battered risk assets. But S&P 500 Futures rose marginally in Asian trade, indicating that Wall Street may be attempting a recovery after Friday’s losses.
Focus this week is squarely on a barrage of central bank meetings, starting with the Bank of Japan on Tuesday. The Federal Reserve is set to decide on rates on Wednesday, while the Bank of England, Swiss National Bank, and the People’s Bank of China will also decide on rates later this week.
Chinese stocks flat after mixed industrial prod, retail sales data
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved less than 0.1% each, while Hong Kong’s Hang Seng index lost 0.2%.
Government data released on Monday showed Chinese industrial production grew slightly less than expected in May, amid increased pressure from U.S. trade tariffs.
Gold prices steady as Israel-Iran conflict rages on.
Gold prices fell slightly in Asian trade on Monday amid some pressure from a strong dollar, although the yellow metal was sitting on strong gains as a worsening Israel-Iran conflict boosted haven demand.
The yellow metal saw some profit-taking on Monday after a nearly 4% jump last week, while resilience in the dollar, before a Federal Reserve meeting, also pressured metal prices across the board.
Spot gold fell 0.1% to $3,427.78 an ounce, while gold futures for August fell 0.2% to $3,446.45/oz by 00:57 ET (04:57 GMT).
Gold underpinned by Israel-Iran conflict, US intervention in focus
Gold’s stellar gains came late last week, after Israel struck several targets in Iran, including Tehran’s nuclear facilities.
Dollar steady with focus on Middle East conflict.
The dollar held its ground in choppy trading on Monday, as investors keenly monitored Israel-Iran fighting for any signs that it could escalate into a broader regional conflict and braced for a week packed with central bank meetings.
As both Iran and Israel showed no signs of backing off from their attacks, market participants mulled the prospect that Tehran might seek to choke off the Strait of Hormuz – the world’s most important gateway for oil shipping – which could raise broader economic risks from disruptions in the energy-rich Middle East.
Crude prices were up about 1% after closing 7% higher on Friday following Israel’s pre-emptive strike on Iran. [O/R]
On Monday, the dollar was flat at 144.08 Japanese yen after rising nearly 0.4% earlier in the session, while the euro was muted at $1.1555.
The greenback was also steady against the Swiss franc at 0.811, while an index that measures the dollar against six other currencies dipped 0.1% and was last at 98.11.
Currencies that are positively correlated to risk such as the Australian dollar and the New Zealand dollar were marginally higher, while oil exporter Norway’s krone firmed 0.3% to hit its highest since early 2023.
“The dollar’s role as a safe haven will surely be tested, and recent price action has been inconclusive,” said Win Thin, global head of markets strategy at Brown Brothers Harriman.
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