Public Markets 8 Hours

Last updated: May 24, 2026, 11:32 PM ET

Asia-Pacific Markets

Indian state lenders fell 6% this month as geopolitical tensions with Iran pushed yields to two-year highs, while the Reserve Bank of India Governor Sanjay Malhotra suggested the rupee may be undervalued following its recent depreciation. India's bond investors turned to soaring swap rates to boost returns as multi-year high rates created new opportunities in the debt market. Meanwhile, Chinese firms accelerated plans for new coal-fired power plants despite government efforts to curb growth after recent rapid expansion, while a deadly mine explosion in Shanxi province pushed coking coal prices to daily limits amid supply disruption fears. Global automaker Stellantis found a lifeline through partnerships with Chinese competitors as the industry navigates shifting trade dynamics.

Commodity Markets

Oil dropped in early Asian trade amid prospects for reopening the Strait of Hormuz, with U.S. officials later confirming a deal with Iran was near, though President Trump emphasized the blockade would remain until a formal agreement was completed. The potential reopening of the critical shipping route remained uncertain as details of any formal agreement remained unclear. European natural gas declined during Asian trading on optimism about a U.S.-Iran deal, while gold and silver rose in early trade on hopes for conflict resolution. In China, coking coal prices jumped by the daily limit following a deadly mine blast, highlighting how supply disruptions can quickly impact commodity markets.

Geopolitical Impact on Markets

President Trump hailed an agreement with Iran as groundbreaking despite admitting it "isn't even fully negotiated," with Senate Republicans casting doubt on the potential peace deal, including some of the president's closest allies who criticized it as undermining war goals. The potential deal focused on reopening the Strait of Hormuz but left unresolved critical issues including nuclear stockpiles, enrichment, and missiles. Market participants remained cautious about the timeline for normal shipping resumption and subsequent oil price adjustments, as geopolitical uncertainties continued to influence risk appetite across asset classes.

Global Currency & Fixed Income

The Australian dollar rose against the U.S. dollar in the Asian session on hopes of a Middle East peace deal, while gold prices held steady near key levels as the metal benefited from both safe-haven demand and currency movements. Japan's rising bond yields deepened the performance divide among regional banks, with those holding weaker investment portfolios likely to underperform peers with stronger holdings. European Central Bank President Christine Lagarde indicated the ECB would lift its