Asian stocks rose on Tuesday, with Japan and South Korea leading gains, lifting the MSCI Asia Pacific Index by 0.5%. This uptick follows a rally in U.S. tech stocks, where the S&P 500 rose 1.2% and the Nasdaq 100 nearly doubled that gain on Monday.
The yen traded at 161.93 per dollar, its weakest level since 1986, raising concerns about potential market intervention by Japanese authorities.
Meanwhile, global equities are on track for their best quarter in nearly six years, driven by a rebound in stocks after a recent AI-driven selloff. Investors are now focusing on upcoming U.S.-Iran talks and U.S. jobs data, which may influence Federal Reserve interest rate decisions.
“The bounce we’re seeing is a welcome development for the bulls.”
Matt Maley, Miller Tabak
In the U.S., the S&P 500 has rebounded 20% from its March 30 low to its June 2 peak, a rare occurrence since 2000.
American crude held steady at around $70.15 a barrel, while gold remained unchanged at approximately $4,015 an ounce. The dollar slipped, and U.S. Treasury yields showed little change.
“We continue to believe strongly that the action in the tech sector will continue to be the main driver in the stock market.”
Matt Maley, Miller Tabak
Background
The yen's depreciation has boosted Japanese exporters but increased import costs, adding pressure on Prime Minister Sanae Takaichi's government. The Bank of Japan recently raised its benchmark interest rate to 1%, the highest since 1995, but the impact was minimal due to expectations of continued hawkishness from the Fed.
Looking ahead, market participants will closely monitor the outcomes of U.S.-Iran talks and U.S. jobs data, which could provide further direction for global markets.
