Japanese markets are expected to see profit taking on Monday after the Nikkei 225 reached a fresh record closing high above 71,250 following seven consecutive sessions of gains totaling more than 6,950 points or 10.9%. According to RTTNews, the Nikkei finished slightly higher on Friday, gaining 196.57 points or 0.28% to close at 71,250.06 after trading between 70,517.98 and 71,952.99. However, gains from the broader market were limited by weakness from financial shares, technology stocks and automobile producers. Among major movers, Nissan Motor plunged 4.43%, Mazda Motor tumbled 2.74%, Toyota Motor shed 0.61%, Mitsubishi UFJ Financial tanked 2.85%, and Mizuho Financial cratered 4.42%. South Korea's Kospi gained 1.6% after the opening bell, showing continued positive momentum in the region.
China's Hang Seng index futures were down 1.59%, trading lower than the index's last close of 23,924.81, while the Shanghai index also traded in red. As reported by NDTV Profit, Australia's benchmark S&P/ASX 200 was marginally higher, showing mixed performance across the Asia-Pacific region. The divergent performance reflects different market reactions to ongoing geopolitical tensions.
US equity futures slipped with S&P 500 futures trading 0.4% lower and Nasdaq-100 futures down 0.6%, while Dow Jones futures dropped 183 points. According to NDTV Profit, crude oil prices rose as Wall Street watched the latest developments of Iran war negotiations and awaited the release of inflation data closely watched by the US Federal Reserve. The US stock market was closed on Friday for Junteenth.
Asian markets opened amid higher crude oil prices as uncertainty over the Middle East conflict continues to escalate. Brent crude climbed 2.2% to above $82 a barrel, while West Texas Intermediate traded above $78, according to NDTV Profit. US President Donald Trump escalated his rhetoric against Iran, saying the United States could take control of the Strait of Hormuz and levy tolls on crude oil shipments if required. This statement came after Iran said on Saturday that it had closed the Strait of Hormuz in response to Israel's attacks in Lebanon, warning that little was likely to be achieved unless the fighting stopped. As per RTTNews, crude oil prices tumbled last week on reports that the Strait of Hormuz was re-opened, falling more than 10% from the previous week's close to below $80. However, Iran closed the strait again over the weekend, likely prompting a rebound in crude prices this week.
The European markets were soft with the UK's FTSE 100 ending down 0.35%, while Germany's DAX drifted down 0.16% and France's CAC 40 lost 0.55%. As reported by RTTNews, the weakness emerged due to uncertainty about U.S. and Iran securing a lasting peace truce in the Middle East following the abrupt cancellation of talks between the two nations in Switzerland. The cancellation happened following exchange of fresh attacks between Israel and Hezbollah, and Iran then accused the U.S. of breaking the agreement - since one of the main conditions was for Israel to also cease hostilities.
