Asia Market Quick Take – 11 June, 2026
Key points:
- Macro: US strikes Iran for 2nd day. US CPI and Core CPI matches expectations.
- Equities: Chipmakers led losses; Nasdaq 100 lost 2%, SMCI plunged 28%
- FX: Dollar holds firm; high CPI and Iran strikes dampen Fed-cut hopes
- Commodities: Brent crude surged; gold fell for a third straight session
- Fixed income: UST yields bear‑steepened; 10‑year up to 4.546%
------------------------------------------------------------------
.png?la=en-sg)
Disclaimer: Past performance does not indicate future performance.
Macro:
- The US launched a second day of strikes on Iran, raising fears that peace efforts could collapse and the conflict could drag on. Trump accused Tehran of stalling on an interim deal, while Iran vowed to stand firm. Earlier, the US carried out “self-defense strikes” after an American helicopter was downed, and Iran hit US facilities in Bahrain, Jordan, and Kuwait in response.
- US annual inflation rose to 4.2% in May 2026, the highest since April 2023 and third straight increase, driven by a 23.5% jump in energy costs amid the Iran conflict. Gasoline rose 40.5% and fuel oil 58.9%. Monthly CPI was up 0.5%, with energy over 60% of the gain. Core inflation reached 2.9% year-on-year, while monthly core CPI slowed to 0.2%.
- The Bank of Canada kept its key overnight rate at 2.25% for a fifth straight meeting in June 2026, as expected, and left the Bank Rate and deposit rate at 2.5% and 2.20%. It sees limited spillover from higher energy prices, expects inflation near 3% before easing toward 2%, and notes weak economic activity and ongoing US trade policy uncertainty.
Equities:
- US — Wall Street fell sharply on Wednesday as escalating US-Iran tensions and a continued rotation out of tech weighed on sentiment. The S&P 500 dropped 1.6% to 7,267, its lowest close since May 5, while the Nasdaq 100 fell 2.0% — its first back-to-back 1%+ decline since March. The Dow shed 953 points (-1.9%). Chipmakers led losses: Qualcomm -6.1%, AMD -5.1%, Nvidia -3.7%, and Super Micro Computer plunged 28.0% on plans to raise $7b through equity financing. Cracker Barrel surged as much as 35% intraday after boosting its revenue guidance. Amazon's trucking expansion sent Old Dominion -5.1%, FedEx Freight -7%, and Saia -3.3%. In after-hours trade, Oracle fell ~7% after reporting higher-than-expected capex of $16.5bn for the quarter, overshadowing a modest beat on cloud infrastructure revenue.
- EU — European equities were broadly muted on Wednesday, with the Stoxx 600 little changed as softer US core CPI offset Middle East concerns. The DAX fell 1.0% to 24,195, its lowest since May 15, with Siemens Energy the largest decliner at -6.5%. The Euro Stoxx 50 closed -0.66% at 6,010. The FTSE 100 bucked the trend, rising 0.3% to 10,255, led by Shell (+1.8%) on higher oil prices. The SMI gained 0.8%, with Nestle up 2.6%. HSBC and Standard Chartered extended declines in London, down ~8% and ~12% respectively since last Thursday on concerns over new China regulatory curbs. Soitec fell ~11% after a Jefferies downgrade.
- Asia — Asian equities fell on Wednesday as tech selling resumed and Middle East tensions escalated. The MSCI Asia Pacific Index dropped ~2.7%. The Kospi tumbled 4.5% to 7,731, reversing part of Tuesday's 8.2% rebound, with SK Hynix falling 7.5%. The Nikkei 225 declined 0.7%, unable to recover from a lower open. The Hang Seng fell, with HSBC and Standard Chartered down 4.8% in Hong Kong. The STI dropped 1.3% to 4,959, its lowest since May 12, with Thai Beverage the largest decliner at -3.4%. This morning (Thursday), Asian markets are extending losses as US forces launched fresh overnight strikes on Iran. Brent crude surged above $95, and MSCI Asia Pacific is down ~1%, on track for a fifth loss in six sessions. The yen is hovering near 160.52 per dollar, close to its weakest since April.
Earnings this week:
- Thursday: Chow Tai Fook, Adobe, Halma, Lennar, LPP, Do & Co
- Friday: SpaceX IPO
FX:
- The USD remains broadly firm as sticky US inflation and renewed US–Iran tensions limit Fed cut expectations and support safe-haven demand.
- USDJPY hovered around 160.51, little changed on the day but near a new 52‑week low for the yen, heightening intervention concerns as JPY remains under heavy pressure despite being roughly 12% stronger versus the dollar over the past year.
- AUDUSD softened below 0.7000 on the Iran headlines and remains vulnerable after breaking below its 100‑day moving average.
- USDCNH near 6.78 was marginally firmer, reflecting still-accommodative liquidity conditions under PBOC policy.
- GBP is holding up, though described as “hawkish for the wrong reasons,” supported more by structural and inflation concerns than by strong growth.
Commodities:
- Brent crude surged over 2% to near $95.20 a barrel in early Thursday trade after the US launched a second consecutive day of strikes on Iran. WTI settled around $90 on Wednesday. Iran's announcement of a Strait of Hormuz closure — subsequently refuted by US CENTCOM — added to supply disruption fears.
- Gold fell for a third consecutive session, dropping as much as 1.2% to near $4,024 an ounce in early Thursday trade, extending Wednesday's 3.6% decline. Gold has now entered bear market territory, down more than 23% from its all-time high, as rising rate hike expectations erode the metal's appeal. ETFs have been net sellers of gold for several consecutive sessions.
- Base metals broadly declined. LME copper fell ~$99.50 to $13,515.50/ton, aluminium dropped $81.50 to $3,466/ton, and nickel fell $386 to $17,678/ton, as risk-off sentiment and demand concerns weighed on the complex. Chile's April copper output also disappointed, with Codelco production down 14% y/y and Escondida down ~22% y/y.
Fixed income:
- US Treasury yields bear steepened, with the 10-year yield rising 2.6bps to 4.546% and the 30-year yield up 2.9bps to 5.029%, while the 1-year yield fell 1.2bps to 3.902%. The 5s30s spread widened to 76.2bps. Yields initially dipped on the softer core CPI print before resuming their climb alongside oil prices.
- The $39 billion 10-year Treasury auction was awarded at 4.538% — the highest yield since February 2025 — with demand metrics broadly strong. Bid-to-cover came in at 2.57x, with indirect bidders taking 63.7% of the allocation, above recent averages.
- Bond traders remain fully priced for a Fed rate hike by December, with roughly 60% odds of a move as early as October. The 10-year TIPS real yield is hovering near 2.19%, just below a 12-month high, attracting inflation-wary buyers. JPMorgan has raised its year-end 10-year yield forecast to 4.70%, citing a resilient labour market and firm growth backdrop.
For a global look at markets – go to Inspiration.
This content is marketing content and should not be considered investment advice. Trading financial instruments carries risks and historic performance is not a guarantee for future performance.
The instrument(s) mentioned in this content may be issued by a partner, from which Saxo receives promotion, payment or retrocessions. While Saxo receives compensation from these partnerships, all content is conducted with the intention of providing clients with valuable options and information.