This content was published on
June 9, 2026 - 02:57
5 minutes
(Bloomberg) — Asian stocks rebounded from their biggest drop since March as tensions in the Middle East eased and a selloff in artificial intelligence shares abated.The MSCI Asia Pacific Index climbed 0.5%, its first advance following three days of losses spurred by factors including bets for an interest-rate hike by the Federal Reserve. South Korean shares climbed 3% after investors returned to the AI trade, which sent Wall Street gauges shares of chipmakers including Nvidia Corp. and Intel Corp. higher.Even so, a sense of caution prevailed in the market with US equity-index futures for the Nasdaq 100 dropping 0.5%.Brent crude was little changed to trade at around $94.20 a barrel after Iran and Israel pledged to ease strikes that threatened the peace talks in the Middle East.After a brief interruption to the rally that propelled stocks to record highs, investors are returning to the AI trade, signaling confidence that the bull market still has room to run. Sentiment has also improved as geopolitical tensions ease, reducing concerns over oil-driven inflation and the prospect of higher interest rates.“Markets rarely move in a straight line at the pace seen since the March lows,” according to Morgan Stanley’s Mike Wilson, who maintained his constructive outlook, supported by earnings and strong economic data. “A correction was inevitable and ultimately healthy if this bull market is going to extend into year-end.”Meanwhile, Iran and Israel agreed to ease strikes against each other after a flare-up in violence threatened to derail peace negotiations and led President Donald Trump to appeal for de-escalation.Attention remains focused on whether energy flows will resume meaningfully via the Strait of Hormuz. A trickle of commercial shipping returned to the waterway over the weekend, even as the risks prompted some vessels to travel with their digital transponders switched off.Oil prices and their impact on inflation are key factors traders are watching after Friday’s blowout payrolls report reinforced bets on a rate hike. The May consumer price index due Wednesday is expected to jump by 4.2% from a year earlier — the highest rate in more than three years.But the core CPI is seen cooling slightly on a monthly basis — potentially providing a welcome signal to Fed officials.Meantime, Citigroup Inc. strategists led by Scott Chronert raised their year-end target for the S&P 500 after a “big step up” in earnings expectations.“We do not expect investors to lose confidence in the AI outlook,” said Mark Haefele at UBS Global Wealth Management. “Although tech stocks have come under pressure in recent days amid concerns about whether expectations can be met, business fundamentals remain strong.”Not everyone was as bullish. Investors should exercise caution regarding US stocks as an increasing number of “bear market signposts” point to an approaching top, according to Bank of America Securities.There are “too many red flags,” strategists led by Savita Subramanian wrote in a note dated June 5. “Take profits,” they said.Corporate News:OpenAI, the maker of ChatGPT, filed confidentially for an IPO, joining artificial intelligence rivals in tapping public markets to fund ambitious growth plans. SpaceX’s initial public offering is well oversubscribed, according to people familiar with the matter, as demand builds for a potentially record-setting debut. The Pentagon accused some of China’s biggest companies including Alibaba Group Holding Ltd., Baidu Inc. and BYD Co. of supporting the Chinese military. A federal judge struck down a $100,000 fee President Donald Trump ordered for H-1B visa applications, providing a reprieve for US technology companies. Some of the main moves in markets:StocksS&P 500 futures fell 0.3% as of 9:54 a.m. Tokyo time Hang Seng futures were little changed Nikkei 225 futures (OSE) rose 0.3% Japan’s Topix rose 0.2% Australia’s S&P/ASX 200 fell 1.3% Euro Stoxx 50 futures fell 0.7% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1528 The Japanese yen was little changed at 160.26 per dollar The offshore yuan was little changed at 6.7836 per dollar The Australian dollar was little changed at $0.7040 CryptocurrenciesBitcoin fell 1.5% to $62,542.73 Ether fell 1.4% to $1,665.12 BondsThe yield on 10-year Treasuries advanced one basis point to 4.57% Japan’s 10-year yield advanced two basis points to 2.735% Australia’s 10-year yield advanced six basis points to 4.96% CommoditiesWest Texas Intermediate crude was little changed Spot gold fell 0.3% to $4,316.22 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Rob Verdonck.©2026 Bloomberg L.P.
