Asia-Pacific markets rose on Monday as investors focused on fresh economic data from China and ongoing geopolitical tensions between Israel and Iran.
Oil prices surged and gold rallied after the weekend saw continued strikes exchanged between Israel and Iran, escalating concerns over regional stability. The move into safe-haven assets reflected investor caution amid the geopolitical unrest.
Christian Gattiker, Head of Research at Julius Baer, noted, “What matters for markets is not just whether the conflict continues, but whether it broadens in scope or duration.” In his Monday note, Gattiker added, “Unless the situation escalates rapidly, markets are unlikely to adjust beyond the initial risk premium. For now, it’s more of a tactical event, giving traders a reason to take profits and reconsider their positions.”
China Economic Data: Mixed Signals
China’s latest economic indicators painted a mixed picture. Retail sales rose 6.4% year-on-year in May, indicating resilient consumer demand. However, industrial production growth slowed to 5.8%, indicating some moderation in factory activity.
In response, Mainland China’s CSI 300 Index gained 0.25% to close at 3,873.80. Hong Kong’s Hang Seng Index advanced 0.7% to 24,060.99.
Regional Market Performance
Japan: The Nikkei 225 rose 1.26% to 38,311.33, while the broader Topix rose 0.75% to 2,777.13.
South Korea: The Kospi surged 1.8% to 2,946.66, and the small-cap Kosdaq rose 1.09% to 777.26.
Australia: The S&P/ASX 200 ended flat at 8,548.40.
India: The Nifty 50 climbed 0.92%, and the BSE Sensex rose 0.84% by 1:50 p.m. local time.
Wall Street Recap
U.S. equity futures edged higher during Asian trading hours, following Friday’s sharp sell-off triggered by rising energy prices and heightened geopolitical tensions.
Dow Jones Industrial Average: Dropped 769.83 points (-1.79%) to 42,197.79
S&P 500: Fell 1.13% to 5,976.97
Nasdaq Composite: Lost 1.30% to settle at 19,406.83
