Asian Markets Slide as New U.S. Strikes on Iran Spark Investor Caution 
S&P 500 Hits Record High as Tech Rally Slows Amid Iran Peace Uncertainty 
Dollar Gains Slightly as U.S.-Iran Tensions Keep Forex Markets on Edge 
UK Grocery Inflation Slows to 3.1% as Supermarket Price Pressures Ease in May 2026 
Gold Prices Hold Near Record Levels as Inflation Concerns Offset Middle East Ceasefire Hopes 
Nikkei Hits Record High as AI Chip Stocks Power Japan Market Rally 
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market 
S&P 500, Nasdaq Hit Record Highs as Iran Ceasefire Talks and AI Rally Boost Markets 
Dow Hits Record High as Healthcare and Consumer Stocks Lead Wall Street Rally 
US Launches New Trade Investigation Into Vietnam Over Intellectual Property Concerns 
Asian Currencies Steady as U.S.-Iran Ceasefire Extension Hopes Weigh on Dollar 
U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty 
US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 
U.S. Sanctions Iran’s Strait of Hormuz Authority as Global Oil Markets Face Turmoil 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
ECB’s Philip Lane Warns Middle East Conflict Could Keep Inflation Elevated 
Asian stock markets traded mixed on Friday as investors assessed contrasting signals from major central banks, while most regional indexes held steady ahead of key U.S. inflation data. Market sentiment was shaped by India’s rate cut, renewed expectations of a Bank of Japan hike, and anticipation surrounding the Federal Reserve’s next move.
In India, the Reserve Bank of India lowered its key repo rate by 25 basis points to 5.25%, delivering a widely expected move aimed at supporting economic growth as inflation continues to ease. Governor Sanjay Malhotra noted that inflation had “eased significantly” and is likely to remain softer than previous forecasts. The central bank also upgraded its GDP growth outlook for FY26, reinforcing confidence in the country’s economic momentum. The Nifty 50 index responded modestly, ticking up 0.2% following the announcement. Although the rate cut was anticipated, earlier optimism had cooled due to strong economic performance and the rupee’s slide to record lows.
Japanese stocks moved in the opposite direction, with the Nikkei 225 dropping about 1.5% as traders grew increasingly convinced that the Bank of Japan may raise interest rates in December. Comments from BOJ Governor Kazuo Ueda earlier in the week were viewed as hawkish, and a Reuters report indicated that policymakers could proceed with a hike with government tolerance, pressuring sentiment in Tokyo.
Across the broader Asian region, trading remained subdued as investors awaited the U.S. Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge. Jobless claims data from the U.S. showed a decline to 191,000, keeping rate-cut expectations intact. China’s CSI 300 and Shanghai Composite were little changed, while Hong Kong’s Hang Seng edged 0.2% lower. South Korea’s KOSPI gained 0.7%, Singapore’s Straits Times Index slipped 0.4%, and Australia’s S&P/ASX 200 traded mostly flat.
This mix of policy shifts and cautious trading continues to shape investor outlook ahead of major economic updates.
