Asian Markets Mixed Amid Trade Developments and Rate Cut Hopes
Asian equities ended the trading week on a mixed note on June 27, as optimism over geopolitical developments and US rate cut expectations was offset by weak economic data and profit-taking in key markets.
Investor sentiment received a partial boost after US President Donald Trump announced a rare earth trade deal with China and teased a forthcoming agreement with India.
Meanwhile, the ceasefire between Iran and Israel held steady, and soft US economic data bolstered hopes for Federal Reserve (Fed) rate cuts.
Japan led regional gains, with the Nikkei 225 surging 1.43% to 40,150.79, its highest close since December, while the Topix rose 1.28% to 2,840.54. Tech stocks tracked US peers higher amid easing Middle East tensions and tariff extension speculation.
In contrast, China's Shanghai Composite fell 0.7% to 3,424.23 after data showed industrial profits dropped 9.1% in the first five months of the year, highlighting persistent deflationary pressures and a troubled property sector. Hong Kong's Hang Seng slipped 0.17% to 24,284.15 despite confirmation of a US-China agreement to expedite rare earth shipments.
South Korea's Kospi declined 0.77% to 3,055.94, as investors locked in gains in battery and automotive stocks. LG Energy Solution dropped 3%, while Hyundai Motor fell 2.2%.
Australia's S&P/ASX 200 gave up early gains to close 0.43% lower at 8,514.20, weighed by losses in banking stocks. The broader All Ordinaries shed 0.34% to 8,743.60.
New Zealand bucked the regional trend, with the S&P/NZX-50 rising 0.83% to 12,583.59, marking its second consecutive day of gains.
In commodities, gold slipped over 1% to trade below US$3,300 an oz and the dollar index hovered near a two-year low ahead of the release of the US May Personal Consumption Expenditure price index. Oil prices were poised for their worst weekly loss since March as supply concerns eased.
Investors now turn their focus to key US inflation data for further cues on the Fed's next move. Related
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