Forex News

The benchmark KOSPI rose 2.4% to around 3,088 on Tuesday, continuing its recent rally as investor sentiment improved sharply following the announcement of a ceasefire between Israel and Iran. The de-escalation eased fears of a broader Middle East conflict and reduced global risk-off pressure, boosting appetite for equities across Asia. Oil prices fell sharply after the ceasefire announcement, further supporting the market by lowering inflationary concerns and relieving worries of supply disruptions. Improved consumer sentiment in South Korea, with stable inflation expectations, also helped underpin investor confidence. On the corporate front, leading gains among major stocks were chipmakers and autos, such as Samsung Electronics (3.1%), SK Hynix (7.1%), LG Energy Solution (2.6%), and Hyundai Motor (2.2%). Conversely, losses were seen for Hanwha Aerospace (-1.4%) and Naver (-1.4%).

SHANGHAI 50 increased to a 4-week high of 2707.00 Index Points. Over the past 4 weeks, Shanghai 50 gained 0.19%, and in the last 12 months, it increased 12.96%.

China’s top legislature will review a draft revision to the anti-unfair competition law this week, focusing on regulating cyberspace competition. The Standing Committee of the National People’s Congress will deliberate the draft for a second time from Tuesday to Friday, Xinhua News reported. According to a spokesperson for the Legislative Affairs Commission of the National People's Congress Standing Committee, Huang Haihua, the revision introduces a fair competition review system and aims to curb aggressive rivalry among online platforms. It outlines responsibilities for platform operators to address unfair practices and empowers regulators to act against misconduct. The draft defines unfair behavior, including data rights violations, bad-faith transactions, and large firms abusing market dominance by delaying payments to smaller businesses. The law, first enacted in 1993, was previously amended in 2017 and 2019.

Gold fell to around $3,350 per ounce on Tuesday as a ceasefire agreement between Israel and Iran dampened the metal’s safe-haven appeal. Late Monday, President Donald Trump announced that both nations had agreed to a complete ceasefire, adding that Iran will begin the truce immediately, followed by Israel after 12 hours. Trump's comments came shortly after Iran made a token retaliation against a US military base in Qatar in which no casualties were reported. Meanwhile, Federal Reserve Governor Michelle Bowman said she could support a July rate cut if inflation stays in check, echoing Governor Christopher Waller's dovish stance. Investors now turns their attention to Federal Reserve Chair Jerome Powell, who is set to testify before US Congress on Tuesday and Wednesday, for any signals on the future path of interest rates.

The US dollar index fell to around 98.2 on Tuesday, extending its decline from the previous session after President Donald Trump announced a ceasefire agreement between Iran and Israel, dubbing the conflict “The 12-Day War.” Markets also largely shrugged off Iran’s retaliatory strike on a US base in Qatar, which caused no casualties, while Tehran’s decision to avoid targeting the Strait of Hormuz helped ease concerns over oil supply disruptions. Adding to the dollar’s weakness, Federal Reserve Governor Michelle Bowman said she could support a rate cut in July if inflation remains subdued, echoing dovish remarks from Governor Christopher Waller. Traders responded by ramping up bets on monetary easing, now pricing in roughly 55 basis points of rate cuts by year-end. Investor focus now shifts to Fed Chair Jerome Powell’s semi-annual testimony before Congress, where markets will look for further guidance on the central bank’s policy trajectory.

The Nikkei 225 Index jumped 1.3% to above 38,800 while the broader Topix Index gained 1.2% to 2,794 on Tuesday, ending a three-day losing streak after US President Donald Trump announced that Iran and Israel had agreed to a ceasefire, calling the conflict “The 12-Day War.” Investors also appeared to look past Tehran’s retaliatory strike on a US military base in Qatar which caused no casualties. Moreover, Iran avoided targeting the critical Strait of Hormuz, easing concerns over a wider disruption to global oil supplies. Domestically, investors continued to assess the outlook for Bank of Japan monetary policy as the central bank signaled openness to further interest rate hikes. Technology stocks led the charge, with strong gains from Lasertec (9.1%), Disco (3%), Tokyo Electron (4.8%), and SoftBank Group (2.8%).

WTI crude oil futures dropped more than 1% to around $66.2 per barrel on Tuesday, hitting its lowest level in nearly two weeks, after US President Donald Trump said that Israel and Iran have agreed to a ceasefire, alleviating fears of supply disruptions in the Middle East. Trump implied that the ceasefire was set to begin late on Monday, with Iran halting its attacks first, followed by Israel in the coming hours. If both sides maintain peace, the war will officially end after 24 hours, concluding a 12-day conflict. The announcement came just hours after Iran fired missiles at a US military base in Qatar in retaliation for US strikes on its nuclear facilities. US defenses intercepted the missiles and no casualties were reported, which led prices to settle over 7% lower on Monday. The de-escalation has eased concerns that Iran might attempt to block the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil passes.

President Donald Trump announced on Truth Social that Israel and Iran had agreed to a tentative ceasefire set to begin around midnight Washington time on Monday, following U.S.-ordered airstrikes on Iran’s nuclear facilities. Trump said the accord aims to bring a lasting end to the conflict, referring to it as “THE 12 DAY WAR.” He praised both nations for having the “Stamina, Courage, and Intelligence” to reach the agreement. According to Reuters, an Iranian official confirmed Tehran accepted the U.S.-brokered deal, though Israel has yet to comment.

US stock futures climbed on Tuesday after President Donald Trump announced a ceasefire timeline between Israel and Iran, referring to the conflict as “The 12-Day War.” The news helped calm investor nerves following a weekend escalation in which the US struck Iranian nuclear sites, effectively joining Israel’s conflict with Tehran. Iran’s response—a limited strike on a US base in Qatar—caused no casualties, helping to reverse the spike in oil prices and pressuring energy stocks. In Monday’s regular session, the Dow rose 0.89%, the S&P 500 gained 0.96%, and the Nasdaq advanced 0.94%, driven by easing geopolitical fears and strong corporate news. Tesla jumped 8.2% after launching its first fleet of driverless taxis, while AMD gained 1% on the back of a research upgrade, lifting the broader tech sector. Investors now await Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday for further clues on the outlook for interest rates.

The NZX 50 was almost flat, trading around 12,536 in morning trade on Tuesday, after retreating for the fourth straight session, as gains in materials, energy, and consumer staples offset declines in financials, utilities, and industrials. Traders remained cautious amid escalating tensions in the Middle East, continuing to monitor developments after Iran launched missiles at a US air base in Qatar. On a positive note, Federal Reserve Vice Chair for Supervision Michelle Bowman said the central bank should consider cutting its key rate as soon as the July meeting. Meanwhile, US stock futures rose after President Trump announced a ceasefire timeline and said he would end the war between Iran and Israel. Domestically, traders awaited the release of trade data and consumer sentiment figures, which are due this week. Mainfreight surged 2.7%, Westpac Banking Corporation rose 0.7%, and Ebos Group gained 0.5%, while Auckland International Airport and A2 Milk fell 0.8% and 1.0%, respectively.

Bitcoin and Ether are on the rise. Ether is leading the charge with a 7.62% gain. Bitcoin follows with a 4.19% increase.

Top commodity losers are Canola (-3.06%), Wheat (-2.51%) and Corn (-2.27%). Gains are led by Coffee (2.86%) and Oat (0.83%).

Top commodity gainers are Platinum (2.32%) and Copper (1.07%). Biggest losers are Lithium Carbonate (-0.74%), Silver (-0.63%) and Gold (-0.36%).

Top commodity losers are Crude Oil WTI (-11.12%), Heating Oil (-10.96%) and Brent Crude Oil (-10.93%). Gains are led by Uranium (2.17%).

Top currency losers are Dollar Index (-0.54%). Gains are led by Brazilian Real (0.34%) and Indian Rupee (0.27%).