Asian stocks steady, oil lower as US and Iran sign peace deal

Asian stocks steady, oil lower as US and Iran sign peace deal TOKYO, June 18 : Asian stocks were steady and oil prices dipped on Thursday as investors assessed progress toward ending the war in the Middle East after the presidents of the U.S. and Iran signed an interim peace deal, though uncertainties still hovered. Both countries released the text of the agreement, which had already circulated widely before its contents were published. It extends a ceasefire announced in April by another 60 days to allow the two sides to negotiate a final truce. U.S. President Donald Trump, however, threatened to resume attacks and kill Iranian officials if they failed to honour their commitments. "Major geopolitical risk persists and will also remain a major driver of market action," said Kyle Rodda, a senior financial market analyst at Capital.com. MSCI's broadest index of Asia-Pacific shares outside Japan was flat. Japan's Nikkei share average rallied to another record high, surging past the 71,000 level for the first time, on solid gains in semiconductor and AI-related shares, while South Korean shares gained 0.9 per cent. U.S. stock futures, the S&P 500 e-minis, were up 0.81 per cent at 7,484.8. The benchmark 10-year Japanese government bond yield rose 2 basis points to 2.620 per cent, poised for its highest close since June 16, after earlier touching 2.63 per cent. Oil prices fell, with U.S. crude dipping 1.25 per cent to $75.83 a barrel and Brent crude down 1.4 per cent to $78.41 per barrel. Overnight on Wall Street, all three major indexes fell close to or more than 1 per cent as traders bet that the Federal Reserve's next move would be a rate hike after new Fed Chair Kevin Warsh highlighted the need to tame inflation and other policymakers projected rising interest rates later this year. The Dow Jones Industrial Average fell 507.12 points, or 0.98 per cent, to 51,492.55, the S&P 500 fell 91.25 points, or 1.21 per cent, to 7,420.10 and the Nasdaq Composite fell 354.69 points, or 1.34 per cent, to 26,021.66. The yield on benchmark 10-year Treasury notes rose to 4.471 per cent compared with its U.S. close of 4.463 per cent on Wednesday. The 2-year yield, which rises with traders' expectations of higher Fed funds rates, touched 4.1759 per cent compared with a U.S. close of 4.163 per cent. The Bank of England meets on Thursday and, as with the Fed, no change in rates is expected, leaving the focus on the tone of policymakers' commentary. The dollar rose 0.01 per cent against the yen to 160.65 after touching 160.79 overnight, hitting its highest level since July 2024. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.03 per cent to 100.32. The euro was up 0.1 per cent at $1.1511. Recent declines in oil prices have begun to ease worries about an economic slowdown, especially in energy-importing Europe. The International Energy Agency said on Wednesday the oil market would move into a significant supply surplus in 2027 after recovering from the closure of the Strait of Hormuz. Spot gold traded at $4,309.75 per ounce. In cryptocurrencies, bitcoin gained 0.16 per cent to $64,464.75. Ethereum rose 0.37 per cent to $1,752.54. [Image text:] y3T INPEX CHYSVE ZOZO 9) ROTHD 7&I-HD 1277 3378 5350 14710 3178 2352 1091.0 3722 1320. 0 191 12. C 339 149 1281 SOEEAX 2 +23 29 SE 24 SE 1079 3736 99E5 334 190 - Ou 191 50 1091 749 1260 2340 1070. 3663 316 AKe RAI AZKADX SUMCO 2633 5555 2690. 3296 1641 05055 1177. 1751 05055 1761 4155 -83 3308 9 20 50 2708 43 S 20E 86 1767 744 4 729 3265 768. 4304 1744 1730.0 4108 BHD D SHIFT FHD tSHD 2664.0 361 6050 1586, SS 2200.0 637. 793 94300 576. SE oSs 0 29 SOME 66 15 D 19 5o 185 2704 30 2178.0 787 18000 DeNA #UHD 3X BE *y- MAt 5291 T 1503 2720.0 -60. -6 2680. SE 1496 0 405 880 2 77 29 3045 99 MESX 2 688 50 1485. 7 2250 640 2598.0 497- A57HD T E#EY 15 U BE 610 94720 2075. 0 6609 7454 3196 6 -61 39 o5 000 5o 7 10 660 70 08 9 6040 2364.0 103