Asian markets closed higher on Monday, June 16, the opening session of the week, ignoring geopolitical tensions in the Middle East. Expectations that no other parties will enter the ongoing conflict between Israel and Iran are rising, along with optimism that the conflict can be contained. Positive Chinese numbers supported Chinese indices, with expectations for the Bank of Japan’s monetary policy announcement scheduled for Tuesday.
Figures released this morning showed that retail sales in China rose 6.4% year-on-year in May, compared to 5.1% in April, exceeding expectations of a 4.9% increase, benefiting from promotional offers for products held up by tariffs.
Conversely, Chinese industrial production rose 5.8% year-on-year in May, compared to 6.1% in April and 7.7% in March, falling short of expectations of 5.9%. Markets are awaiting the Bank of Japan’s meeting in the Asian session tomorrow, Tuesday, where expectations indicate that the bank will keep interest rates unchanged at 0.50%. It is also expected to reduce the current reduction in government bond purchases starting in April 2026, a further indication of the bank’s determination to continue its plan to tighten monetary policy. The Nikkei index closed the session at 38,311 points, up 1.26%, or 477 points. The Topix index of the Tokyo Stock Exchange rose today by approximately 0.75%, closing at 2,771 points. Advantest and Tokyo Electric Power led the Nikkei’s gains, rising more than 9% and 4%, respectively. Steel stocks led the gains on the Tokyo Stock Exchange’s sub-indices, rising 1.75%. Nippon Steel rose 1.55% after US President Trump approved its $14.9 billion bid to acquire US Steel. The shipping sector rose 1.65% on expectations of higher global freight rates, particularly in the Middle East.
Chinese indices also recorded gains at the close of trading today. The broader CSI300 index closed with gains of approximately 0.25%, closing at 3,873 points, while the Shanghai Composite Index closed 0.35% higher at 3,388 points.
Hong Kong’s Hang Seng Index, the main index for the Hong Kong Stock Exchange, closed today with a gain of approximately 0.70%, closing at 24,060 points. Xiaomi and JD Health International led the gains, rising more than 4.5%. India’s Sensex index rose by about 0.90% before closing at 81,815, while the Nifty 50 index rose by about 0.88% to trade at 24,935.
In contrast, South Korea’s Kospi index rose by about 1.80% during today’s session, closing at 2,946.
New Zealand stock markets closed with gains today, with the NZX 50 index rising by about 1.09% to close at 12,690, while Australia’s ASX 200 index rose by about 0.1% to close at 8,548. The Singapore Key Index declined by 0.05% in pre-closing trading.