On Tuesday (16 June, 9:19 AM, GMT+7, Bangkok time), major indices in the Asia Pacific traded mixed as investors digested the preliminary agreement between the United States and Iran to halt the conflict in the Middle East, while positioning themselves ahead of scheduled policy announcements from both the Reserve Bank of Australia and the Bank of Japan.
According to U.S. Vice President JD Vance, Washington and Tehran have agreed in principle to extend the current ceasefire for another 60 days. The arrangement also establishes a pathway for further negotiations addressing Iran’s nuclear activities and additional unresolved matters. However, the specific provisions of the draft agreement have yet to be published, and significant issues reportedly still require negotiation.
Monetary policy developments also drew focus. The Reserve Bank of Australia is anticipated to maintain its benchmark rate at current levels for the first time since the beginning of the year, given recent indications of economic moderation. Over in Japan, the nation’s central bank is widely expected to increase its main policy rate to levels not seen since 1995.
The week’s central-bank agenda continues with the U.S. Federal Reserve’s policy decision due Wednesday. Market consensus suggests the Fed will leave its main rate unchanged at 3.5% to 3.75% in Chairman Kevin Warsh’s inaugural meeting. Swaps traders reflect less than an 80% probability of a 25-basis-point hike by the end of the year.
Japan’s NIKKEI declined by 0.21% to 69,173.95. Australia’s ASX 200 fell by 0.42% to 8,876.70, while South Korea’s KOSPI surged 1.30% to 8,657.03.
As for stocks in China, Shanghai’s SSEC slid by 0.21% to 4,087.90. Hong Kong’s HSI contracted by 1.02% to 24,590.36, while Shenzhen’s SZI rose by 0.22% to 15,564.77.
The U.S. stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) gained 0.92% to 51,671.03. NASDAQ jumped by 3.07% to 26,683.94, and S&P 500 increased by 1.65% to 7,554.29. VIX dropped by 8.37% to 16.20.
As for commodities, oil prices settled lower on Monday following President Donald Trump’s announcement that the U.S. and Iran had reached a deal to halt the conflict and work toward reopening the Strait of Hormuz. Brent crude futures finished the session $4.16 lower, down 4.76%, at $83.17 per barrel. U.S. West Texas Intermediate crude closed at $80.75, representing a loss of $4.13 or 4.87%.
Both benchmarks recovered modestly early Tuesday as investors considered uncertainties surrounding the initial agreement. Brent futures climbed 11 cents, or 0.13%, to $83.28 per barrel, and the WTI futures grew 17 cents, or 0.21%, to $80.92 per barrel.
Meanwhile, gold futures dipped 0.46% to $4,331.40 per Troy ounce.
