Tuesday 17th June 2025: Asia-Pacific Markets Slip Amid Israel-Iran Tensions

Global Markets:

•  Asian Stock Markets : Nikkei up 0.57%, Shanghai Composite down 0.18%, Hang Seng down 0.17% ASX down 0.22%
• Commodities : Gold at $3411.35 (-0.19%), Silver at $36.28 (0.09%), Brent Oil at $73.8 (0.69%), WTI Oil at $70.8 (0.73%)
• Rates : US 10-year yield at 4.443, UK 10-year yield at 4.5430, Germany 10-year yield at 2.5280

News & Data:

• (CAD) Housing Starts  280K  to 248K expected
• (USD) Empire State Manufacturing Index  -16.0  to -5.9% expected

Markets Update:

Asia-Pacific markets mostly declined in volatile trading on Tuesday as investors reacted to escalating tensions between Israel and Iran. The situation intensified after U.S. President Donald Trump called for an immediate evacuation of Tehran and left the G7 summit early amid the crisis.

Fitch Ratings noted the conflict’s fallout remains manageable for Israel’s credit rating, stating the impact “appears to be within the range that can be absorbed at Israel’s ‘A’/Negative rating level.” Analysts at the agency expect the fighting to remain localized and short-lived.

Echoing this view, Samy Chaar, chief economist at Lombard Odier, said the confrontation appears controlled for now, despite volatility in commodity markets. While he sees no sign of irreversible escalation, Chaar warned that uncertainty and elevated energy costs could slow economic growth and fuel inflation.

In Japan, the Nikkei 225 rose 0.59%, and the Topix gained 0.34%, after the Bank of Japan held rates steady at 0.5% and announced plans to reduce bond purchases starting next April. South Korea’s Kospi was flat, while the Kosdaq slipped 0.53%. Mainland China’s CSI 300 edged down 0.15%, and Hong Kong’s Hang Seng lost 0.13%. Australia’s ASX 200 dipped 0.14%, and India’s Nifty 50 and Sensex fell 0.27% and 0.37%, respectively.

Meanwhile, U.S. stock futures declined in Asia, despite Wall Street gains overnight on hopes of a peaceful resolution.

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The post Tuesday 17th June 2025: Asia-Pacific Markets Slip Amid Israel-Iran Tensions first appeared on IC Markets | Official Blog.