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July 1, 2026 - 03:58
5 minutes
(Bloomberg) — Asian equities edged lower as investors turned cautious after a rally in chipmakers and other tech stocks helped propel them to their best quarter in 17 years.MSCI’s regional equities gauge dropped 0.3%, snapping a two day gain. Stocks in Japan and Taiwan rose, while South Korea’s benchmark index dropped 1.8%. Hong Kong’s markets are closed for a public holiday.Brent crude rose 0.4% higher to $73.20 a barrel, reversing its losses from Tuesday, even as the US said it had positive talks in Doha on a deal with Iran. The dollar strengthened for a second day, while gold slipped 0.8% to around $3,980 an ounce.The consolidation in stocks followed a quarter in which investors looked past geopolitical tensions and piled into the AI trade, while fresh data reinforced the view that the US economy remains resilient. The rally faces key tests later Wednesday when Federal Reserve Chairman Kevin Warsh speaks in Europe, before attention shifts to the US June payrolls report on Thursday for clues about the path of interest rates. US corporate earnings also start this month.“The markets have proven to be the ultimate grinder as they keep crushing it, despite a lot of hand-wringing that has gone along with this incredible rally that has endured deep selloffs, the Iran war and a number of other outside influences,” said JJ Kinahan at Cboe Global Markets.Tuesday’s economic reports showed US job openings were little changed in May, signaling labor demand remained steady, while consumer confidence edged higher in June as lower gasoline prices helped offset concerns about the job market.Fed policymakers voted unanimously to leave interest rates unchanged at last month’s meeting, the first led by chairman Warsh.Steady employment data and elevated inflation readings have raised expectations that the Fed may need to raise rates later this year to tame price pressures. Officials will hold their next policy meeting at the end of July.Elsewhere, Treasuries inched up. The yield on the benchmark 10-year note fell one basis point to 4.46%.The yen traded around 162.65 per dollar after falling to a 40-year low this week.The currency’s slide to a four-decade low against the dollar left traders eyeing Japan’s next intervention threshold. After the currency weakened past the 162 per dollar level on Tuesday, strategists increasingly pointed to 163 and beyond, arguing the Finance Ministry may tolerate a weaker yen than it did in 2024.Meanwhile, US negotiators Jared Kushner and Steve Witkoff had positive discussions with regional leaders in Qatar and technical talks with Iran are moving ahead, according to a senior administration official.An interim agreement signed earlier this month opened the door to a 60-day negotiating period, but those efforts faced a setback in recent days after a series of clashes over the Strait of Hormuz.“While occasional reports of renewed friction have prompted brief moves in energy markets, investors continue to price in a relatively orderly reopening of the Strait of Hormuz and a gradual normalization of global oil flows,” said Daniela Hathorn, senior market analyst at Capital.com.Corporate Highlights:Nike Inc. shares fell about 1.5% in extended trading after executives on Tuesday gave a cautious outlook and warned about elevated consumer anxiety, adding to investor concerns about the sportswear company’s painfully slow turnaround. Coles Group Ltd. said it’s in talks to buy pet store and veterinary business Greencross Pet Wellness Co., a deal that reportedly could be valued at as much as A$4 billion ($2.8 billion). The US government removed foreign access restrictions on Anthropic PBC’s Fable 5 artificial intelligence model, clearing it for wider distribution after the startup resolved the Trump administration’s safety controls. Some of the main moves in markets:StocksS&P 500 futures fell 0.2% as of 10:55 a.m. Tokyo time Hang Seng futures rose 0.6% Nikkei 225 futures (OSE) rose 0.7% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 fell 0.4% The Shanghai Composite rose 0.3% Euro Stoxx 50 futures were unchanged CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1403 The Japanese yen was little changed at 162.66 per dollar The offshore yuan was little changed at 6.7966 per dollar CryptocurrenciesBitcoin rose 0.2% to $58,737.44 Ether rose 0.2% to $1,577.59 BondsThe yield on 10-year Treasuries was little changed at 4.46% Japan’s 10-year yield advanced 3.5 basis points to 2.705% Australia’s 10-year yield advanced four basis points to 4.76% CommoditiesWest Texas Intermediate crude rose 0.3% to $69.72 a barrel Spot gold fell 0.8% to $3,976.22 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
