Global Markets Fall on Iran-Israel Conflict Concerns

Asia-Pacific markets mostly fell on Tuesday as investors assessed the Israel-Iran conflict. The Bank of Japan held interest rates at 0.5% and announced it would slow the pace of government bond purchases from next April. Japan's Nikkei 225 rose 0.59%, while South Korea's Kospi was flat. Mainland China's CSI 300 and Hong Kong's Hang Seng Index both fell. Oil prices rose as investors monitored the Middle East conflict, with Brent Crude trading at $74.39 per barrel. US stock futures fell in Asian hours, despite the Dow Jones, S&P 500, and Nasdaq Composite rising overnight. Other notable developments included Samsung shares surging over 4% on reports of a new health data platform, and Singapore's non-oil domestic exports unexpectedly falling 3.5% in May.

Stock futures were lower on Tuesday morning as investors monitored the conflict between Israel and Iran. Dow Jones Industrial Average futures slipped 136 points, or 0.32%, S&P 500 futures dropped 0.34%, and Nasdaq 100 futures dipped nearly 0.4%. The move followed a Truth Social post by Trump urging evacuation of Tehran, which also sent West Texas Intermediate crude futures up about 2%. Despite the conflict, the three major averages ended Monday's trading on a positive note, with the Dow adding over 300 points, the S&P 500 advancing 0.9%, and the Nasdaq Composite jumping 1.5%, aided by cooling oil prices. Investors will watch for May's retail sales data on Tuesday and the Federal Reserve's rate policy decision on Wednesday.

Hong Kong stocks fell as concerns over Middle East conflicts potentially straining global oil supply and increasing inflationary risk weighed on the market. The Hang Seng Index dropped 0.1 per cent to 24,028.83 at the noon break, while the CSI 300 Index and Shanghai Composite Index both fell 0.2 per cent. Investors are awaiting policy announcements from top Chinese officials to be made at the Lujiazui financial forum.