Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
Gold Drops Over 1% as Dollar, Treasury Yields Surge on Fed Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
European Stocks Slip as Iran Tensions Offset Strong Eurozone Data 
Dollar Hits Two-Month High as Fed Rate Hike Bets Rise 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
South Korea, US Discuss Warship Building Cooperation 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
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Asian stock markets opened cautiously on Tuesday as investors weighed uncertainty surrounding the fragile Middle East ceasefire against renewed enthusiasm for artificial intelligence investments. Market sentiment remained mixed, with geopolitical risks limiting gains across regional equities despite positive developments in the AI sector.
MSCI’s broad Asia-Pacific index excluding Japan fluctuated between gains and losses during early trading before slipping 0.5%. South Korean stocks led regional declines, falling 2% after initially opening higher. Japan’s Nikkei 225 also moved lower, dropping 0.7%, while S&P 500 futures eased 0.3%.
Investor concerns were fueled by conflicting reports regarding diplomatic efforts in the Middle East. Iran recently announced the suspension of negotiations with the United States, although U.S. President Donald Trump later stated that discussions were continuing at a rapid pace. The uncertainty has contributed to increased volatility across global financial markets.
Oil prices remained elevated, with Brent crude trading near $95 per barrel. The market continues to monitor developments following Lebanon’s announcement of a partial ceasefire between Hezbollah and Israel, a move that could support broader diplomatic efforts aimed at easing regional tensions. Crude prices surged more than 4% in the previous session after reports suggested Iran had halted indirect talks with Washington.
In the United States, equities ended higher overnight. The S&P 500 gained 0.3% after the ISM Manufacturing PMI climbed to 54.0 in May from 52.7 in April, surpassing expectations and reaching its highest level in four years. The stronger data reflected increased business activity as companies accelerated orders amid supply concerns and rising costs linked to geopolitical instability.
AI-related stocks in Asia received support after artificial intelligence company Anthropic confidentially filed for a U.S. initial public offering, potentially targeting a trillion-dollar valuation. Meanwhile, Alphabet shares declined 0.7% after the company revealed plans to raise $80 billion to expand its AI infrastructure capabilities.
The U.S. dollar index held steady at 99.18, while the benchmark 10-year Treasury yield slipped to 4.455%. Gold prices edged down 0.1% to $4,479 per ounce. In cryptocurrency markets, Bitcoin traded at $71,232, while Ethereum remained largely unchanged near $2,002.
Investors are expected to remain focused on Middle East developments, AI industry growth, oil price movements, and upcoming economic data as key drivers of global market performance in 2026.
