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Kospi record contrasts with Middle East risk jitters

Asian equity markets were trading mixed on Tuesday, with South Korea’s Kospi setting a fresh record as investors looked past escalating rhetoric between the US and Iran and held on to hopes for a ceasefire in the Middle East. The cautious optimism in Asia followed a weaker session for US and European stock markets on Monday, where renewed concerns about the conflict weighed on major indices. Safe-haven demand was limited, with gold easing below USD 4800 and the US dollar little changed, while oil prices slipped after their recent climb linked to Middle East supply risks. 

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

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Asian equity markets traded mixed on Tuesday, as hopes for a ceasefire in the Middle East persisted despite renewed threats from the US and Iran. South Korea’s Kospi rose 2.4% to a record close, driven by technology heavyweights such as Samsung Electronics, up 1.4%, and chipmaker SK Hynix, up 4.5%. Japan’s Nikkei 225 advanced 1.2% and India’s Nifty 50 gained 0.8%, whereas Australia’s S&P/ASX 200 edged lower. Mainland China’s CSI 300 gained 0.2% and Hong Kong’s Hang Seng was up 0.5%, as printed-circuit-board maker Victory Giant surged 60% on its Hong Kong listing in the city’s largest initial public offering since last September. Geopolitical tensions remained elevated after US President Donald Trump threatened massive air strikes if talks with Tehran fail and Iran’s parliament speaker rejected negotiations "under the shadow of threats", but investors largely stayed constructive on the near-term economic outlook.

US equities ease on Middle East tensions

US stock indices slipped on Monday, as renewed worries about the conflict in the Middle East dampened sentiment ahead of the ceasefire expiry on Wednesday. The broad S&P 500 fell 0.2% to 7109.14 points and the technology-heavy Nasdaq 100 lost 0.3% to 26,590.34 points, while the Dow Jones Industrial ended only marginally lower at 49,442.56 points after a less pronounced rally in recent sessions. Investors remained cautious as uncertainty persisted over further negotiations between the US and Iran and the continuation of a naval blockade. Apple shares fell 0.5% in extended trading on Monday after the company said chief executive Tim Cook will leave the role in September, with hardware engineering head John Ternus set to become CEO while Cook moves to executive chairman.

Middle East setback pressures European stocks

European equities retreated on Monday, giving back part of their strong gains from the end of last week. The euro-area blue-chip index EuroStoxx 50 fell 1.23%, slipping back below the 6000-point mark it had briefly recaptured on Friday, while Switzerland’s SMI lost 1.1% to 13,284.22 points. Energy majors including BP, Shell, Eni and TotalEnergies gained up to 2.5%, helping the sector index to rise 1.6%, and defensively perceived telecoms also outperformed, whereas travel shares such as Air France-KLM, IAG and EasyJet, as well as bank and auto stocks, were among the weakest performers.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Danaher, Intuitive Surgical, RTX, and UnitedHealth.

Economic data in focus: UK unemployment rate (08:00), Germany’s ZEW Indicator of Economic Sentiment (11:00), euro-area ZEW Indicator of Economic Sentiment (11:00) and US retail sales (14:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.