Source: Sharecast
In a Truth Social post, Trump wrote, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT! DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES!”
The Israel Defense Forces also confirmed the ceasefire had taken hold earlier in the day.
“Brent crude oil, which opened at $81.40 per barrel yesterday, has dropped below $70 per barrel, a level last seen on 12 June when Israel struck Iran,” noted TickMill market strategy partner Patrick Munnelly.
“The decline follows president Trump’s announcement of a brokered ceasefire between Israel and Iran, though the durability of this peace remains uncertain.
“Other markets have adopted a predictable ‘risk-on’ sentiment, with equity indices making solid gains.”
Munnelly noted that both European and US stock index futures surged, while MSCI’s Asia Pacific share index was on track for its largest increase in over two months.
“Meanwhile, gold and the Dollar have joined oil as notable losers. While there is cautious optimism about reduced uncertainty for market participants, short-term volatility still warrants a prudent approach.”
Asia-Pacific markets climb as Trump confirms Israel-Iran ceasefire
Japan’s Nikkei 225 rose 1.14% to 38,790.56, supported by strong gains in Lasertec, which surged 13.3%.
Furukawa Electric and Fujikura also posted gains of over 5%.
The broader Topix index added 0.73%.
Mainland Chinese markets rallied, with the Shanghai Composite climbing 1.15% and the Shenzhen Component gaining 1.68%.
Hainan Airlines led the advance with a 10.21% jump, while Xiangcai and Nuode Investment both rose more than 10%.
Hong Kong’s Hang Seng Index surged 2.06% to 24,177.07, driven by a broad rally.
New Oriental Education climbed 8.68%, China Hongqiao added 6.42%, and Ping An Insurance rose 5.16%.
In South Korea, the Kospi 100 soared 3.42% to 3,124.37, buoyed by sharp rebounds in heavily traded names.
Korea Electric Power surged 20.71%, KakaoBank rose 19.35%, and battery material producer EcoPro Materials gained 16.08%.
Australia’s S&P/ASX 200 rose 0.95% to 8,555.50, as Collins Foods jumped 17.36%.
Appen and Pilbara Minerals also advanced, up 10.31% and 6.64% respectively.
New Zealand bucked the regional trend, with the S&P/NZX 50 falling 0.52% to 12,467.48.
Losses in Fletcher Building, Heartland Group Holdings, and A2 Milk weighed on the index.
Currency markets reflected a retreat in safe-haven demand, with the dollar last down 0.81% on the yen, trading at JPY 144.97.
The greenback was also weaker against its antipodean counterparts, falling 0.78% on the Aussie to AUD 1.5361, and retreating 0.95% from the Kiwi, changing hands at NZD 1.6572.
Oil prices extended losses, with Brent crude futures last down 3.47% on ICE at $69.00 per barrel, and the NYMEX quote for West Texas Intermediate falling 3.43% to $66.16.
The declines followed reports that Iran’s missile strike on a US airbase in Qatar resulted in no casualties, reducing fears of further military escalation.
South Korea consumer confidence hits four-year high as political calm returns
In economic news, consumer confidence in South Korea rose to its highest level in four years in June, driven by easing political uncertainty, new fiscal stimulus, and expectations of pro-growth policies under the country’s new leadership.
The composite consumer sentiment index climbed 6.9 points to 108.7, according to a Bank of Korea survey, marking its third consecutive monthly gain and remaining well above the neutral 100 threshold that separates optimism from pessimism.
It followed a sharp drop in sentiment last December, when a political crisis triggered by former president Yoon Suk Yeol’s imposition of martial law led to his impeachment.
Since the election of president Lee Jae Myung, the government had unveiled a KRW 30.5trn supplementary budget aimed at reviving economic growth and boosting household confidence.
The central bank also reported a decline in inflation expectations, with consumers now forecasting a 2.4% rise in prices over the next year, down 0.2 percentage point from the previous month.
That reflected easing food and fuel costs and the government's continued efforts to stabilise prices.
Reporting by Josh White for Sharecast.com.