ECB’s Philip Lane Warns Middle East Conflict Could Keep Inflation Elevated 
U.S. Sanctions Iran’s Strait of Hormuz Authority as Global Oil Markets Face Turmoil 
U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty 
US Imposes Fresh Iran Oil Sanctions Despite Progress on Ceasefire Talks 
Gold Prices Hold Near Record Levels as Inflation Concerns Offset Middle East Ceasefire Hopes 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
Wall Street Reaches New Record Highs as AI Boom and Iran Ceasefire Hopes Boost Markets 
US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
Nikkei Hits Record High as AI Chip Stocks Power Japan Market Rally 
US Launches New Trade Investigation Into Vietnam Over Intellectual Property Concerns 
Asian Stocks Rally as AI Boom and Iran Ceasefire Progress Lift Market Sentiment 
Wall Street Hits New Highs as U.S.-Iran Ceasefire Talks Boost Market Sentiment 
Oil Prices Set for Sharp Weekly Losses as U.S.-Iran Ceasefire Hopes Ease Supply Concerns 
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market 
European EV Sales Surge in April 2026 as Tesla and Chinese Automakers Gain Ground 
Canada and Germany Advance Major LNG Supply Partnership 
Asian Stocks Flat as Japanese Markets Struggle Ahead of Election
Overview of Asian Stock Performance
Most Asian stocks remained rangebound on Friday, lacking strong trading cues, while Japan’s shares faced steep losses ahead of the country’s highly anticipated general election. The yen, nearing a three-month low, further rattled sentiment due to concerns over potential government intervention in currency markets.
Regional markets took modest cues from Wall Street's slightly positive close overnight. However, U.S. stock index futures steadied in Asian trade as the focus shifted toward upcoming mega cap tech earnings next week.
Japanese Stocks Fall on Election Worries
Japan’s Nikkei 225 index dropped 1.1%, reaching a three-week low, while the TOPIX fell 0.8%. Investors grew cautious ahead of Sunday’s general election, where polls indicate that the ruling Liberal Democratic Party may struggle to secure enough votes, potentially leading to alliances with smaller parties. Such uncertainty could complicate Prime Minister Shigeru Ishiba’s ability to implement key economic and monetary policies.
The ongoing political uncertainty also clouds the Bank of Japan’s (BOJ) monetary policy outlook. Although the BOJ is expected to keep interest rates steady next week, soft consumer inflation data from Tokyo, which showed inflation below the 2% target, added pressure to the yen. This heightened concerns over potential government intervention in currency markets.
Broader Asian Markets Muted
Other Asian markets remained quiet, with China’s indexes slightly up after the People's Bank of China left its key policy rate unchanged. Hong Kong’s Hang Seng rose 1%, marking the best performance in the region, while Australia’s ASX 200 and South Korea’s KOSPI also saw slight gains.
