Wednesday 18th June 2025: Asia Markets Mixed as U.S.-Iran Tensions Rise

Global Markets:

•  Asian Stock Markets : Nikkei up 0.76%, Shanghai Composite down 0.18%, Hang Seng down 1.17% ASX down 0.11%
• Commodities : Gold at $3411.35 (0.19%), Silver at $37.28 (0.49%), Brent Oil at $74.38 (0.09%), WTI Oil at $73.18 (0.03%)
• Rates : US 10-year yield at 4.407, UK 10-year yield at 4.5420, Germany 10-year yield at 2.5345

News & Data:

• (USD) Core Retail Sales m/m  -0.3%  to 0.2% expected
• (USD) Retail Sales m/m  -0.9%  to -0.5% expected

Markets Update:

Asia-Pacific markets were mixed on Wednesday as heightened tensions between Israel and Iran dampened investor sentiment. Concerns escalated further after U.S. President Donald Trump reportedly considered a military strike on Iran and publicly called for the “unconditional surrender” of Iranian leader Ayatollah Ali Khamenei via a Truth Social post.

Analysts at ANZ noted that Trump’s remarks have intensified speculation about deeper U.S. involvement in the ongoing Israel-Iran conflict, which has significantly worsened over the past five days.

In Japan, the Nikkei 225 rose 0.47% and the Topix gained 0.4%. South Korea’s Kospi advanced 0.7%, while the Kosdaq climbed 0.66%. Japan’s exports fell 1.7% year-on-year in May, a milder drop than the 3.8% expected. This follows the Bank of Japan’s recent outlook, warning that slowing global trade could weigh on domestic corporate profits.

Australia’s S&P/ASX 200 was little changed.

In China, the CSI 300 edged up 0.18%, while Hong Kong’s Hang Seng Index dropped 0.87%.

Meanwhile, U.S. stock futures slipped as investors awaited the Federal Reserve’s rate decision due later in the day. On Wall Street, the Dow Jones Industrial Average fell 299 points (0.70%) to 42,215.80. The S&P 500 declined 0.84% to 5,982.72, and the Nasdaq Composite lost 0.91%, closing at 19,521.09.

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