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June 16, 2026 - 03:24
4 minutes
(Bloomberg) — Asian stocks wavered as investors paused to assess the durability of the relief rally fueled by the US-Iran deal to reopen the Strait of Hormuz, while awaiting rate decisions in Australia and Japan.MSCI Inc.’s gauge of regional shares dropped as much as 0.3% in early trading before paring the decline. US equity futures slipped after the S&P 500 added 1.7% and the tech-heavy Nasdaq 100 rallied 3.1% on Monday. Brent crude edged higher to trade around $83.40 a barrel after its biggest drop in more than two weeks.The Reserve Bank of Australia is expected to keep its key interest rate unchanged for the first time this year amid signs the economy is beginning to soften, while the Bank of Japan is widely seen raising the benchmark rate to the highest level since 1995. The decisions begin a packed week for global central banks, with the Federal Reserve also set to announce a policy decision on Wednesday.“Markets will take time to settle, Hormuz flows will take time to normalize, and inventories will need to be replenished,” ANZ Bank economists including Matthew Galt wrote in a note. “We therefore see few immediate implications for central banks’ reaction functions. At the margin, a deal, if successful, may reduce pressure to tighten policy, but developments over the coming months will be closely monitored.”US President Donald Trump and Vice President JD Vance signed an electronic copy of a memorandum of understanding with Iran, a senior US official said in a call with reporters. Hormuz “is already partially opened,” and “it’ll be completely opened” Friday, Trump said during a meeting with French President Emmanuel Macron.Global stocks and bonds climbed on Monday as the US-Iran deal spurred a decline in oil prices and raised hopes that the war that has jolted markets since the end of February may be close to an end. Investors continue to monitor developments in the Middle East, watching for signs whether shipping traffic through the Strait of Hormuz is returning to normal and assessing if the peace accord will hold.A gauge of global equities was down 0.1% on Tuesday, snapping a three-day rally. The dollar and 10-year Treasuries were steady.Economists expect the Fed to keep its benchmark rate in a range of 3.5% to 3.75% as it meets under new Chairman Kevin Warsh for the first time. Swaps traders are pricing in less than an 80% chance of a quarter-point Fed hike by December.The Bank of England and Swiss National Bank are widely anticipated to stand pat. The European Central Bank last week raised rates for the first time in almost three years, with President Christine Lagarde warning inflation triggered by the Iran war is widening beyond just energy.“We’re closely watching how Warsh frames the balance between growth and inflation and any changes Warsh signals on Fed communication, such as reducing reliance on forward guidance to signal how it might act on policy rates next,” BlackRock Investment Institute strategists including Jean Boivin and Wei Li wrote in a report. “That potentially makes the Fed’s policy changes a source of volatility as investors try to infer future moves from fewer clues.”Traders will also be watching a slew of economic data releases from China on Tuesday, including retail sales and industrial production for May.Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 10:22 a.m. Tokyo time Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 fell 0.4% Hong Kong’s Hang Seng was little changed The Shanghai Composite rose 1.6% Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1591 The Japanese yen rose 0.1% to 160.15 per dollar The offshore yuan was little changed at 6.7594 per dollar The Australian dollar was little changed at $0.7067 CryptocurrenciesBitcoin fell 0.3% to $66,287.7 Ether fell 1.3% to $1,792.2 BondsThe yield on 10-year Treasuries was little changed at 4.47% Japan’s 10-year yield advanced three basis points to 2.605% Australia’s 10-year yield advanced four basis points to 4.85% CommoditiesWest Texas Intermediate crude rose 0.4% to $81.05 a barrel Spot gold rose 0.2% to $4,318.38 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Rob Verdonck and Matthew Burgess.©2026 Bloomberg L.P.
