Public Markets 8-Hour Briefing
×Market Movements
Japanese stocks rebounded from a market rout triggered by the US-Israeli attack on Iran, with strong US economic data boosting sentiment. South Korean equities bounced back after their biggest one-day slump on record, with bargain hunters returning to a market battered by panic selling. K Bank surged in its trading debut as South Korean stocks recovered, leading gains across Asian markets as volatility eased.
Commodities & Safe Havens
Gold prices rose on Middle East conflict concerns and a softer US dollar, continuing to attract investors seeking safer assets amid geopolitical tensions. The precious metal has gained ground as the U.S.-Iran conflict persists, reinforcing gold's appeal as a haven asset. Asian economies may turn to coal as a key alternative to LNG for power generation, as energy prices surge due to Middle East disruptions.
China Economic Policy
China set its most modest growth target since 1991, in a tacit acknowledgment that the model powering the country's rapid rise for decades is showing strains. China's GDP target of 4.5%-5% came alongside stimulus plans aimed at supporting the economy. The Chinese government will issue $44 billion in special sovereign bonds to recapitalize some of its largest banks, expanding efforts to fortify the nation's financial system.
Currency Markets
Asia FX dipped amid surging oil prices, with the Indian rupee bouncing off record lows. Emerging-market currencies have seen volatility surge above developed-market peers, breaking the longest lull on record. India's rupee advanced the most in Asia as the central bank stepped in to support the currency after it weakened to a record low.
Geopolitical Impact
President Trump expressed confidence in the US military campaign against Iran even as the timeline for operations remained unclear on the fifth day of the Middle East war. Iran fired more missiles towards Israel as the US Senate rejected a measure to halt the conflict. Markets have shown one clear winner from the Iran war so far—the US, largely due to positioning before the conflict erupted.