06/07/2026
Global markets have adopted a cautious stance entering the second half of the year. Asian equities have staged a rally led by a sustained rebound in tech stocks, with U.S. stock futures holding onto gains registered last Friday. In the commodity market, international crude oil prices edged lower; gold erased early gains while silver posted a mild rise. Forex and U.S. Treasury markets traded range-bound, with the yen and won exchange rates as well as this week’s U.S. Treasury auctions drawing major market attention.
1. Asian Markets Recover, South Korea Leads Gains and Tech Stocks Shine
Risk sentiment improved across the Asia-Pacific region. The MSCI Asia Pacific Index rose 0.3%, with advancing stocks outnumbering declining ones by more than two to one. South Korea stood out as the top performer, with the KOSPI Composite Index surging 1.8%.
The semiconductor sector maintained a solid rebound amid robust market confidence in chip manufacturers. Hon Hai Precision Industry, a key server assembly partner of NVIDIA, reported better-than-expected sales, boosting sector sentiment. SK Hynix’s stock climbed 1.4% following its announcement of a USD 29 billion American Depositary Receipt (ADR) offering scheduled for this week. Samsung Electronics saw its shares jump 4% on reports that the company is considering raising prices for some of its chip products.
U.S. index futures extended last Friday’s gains, stabilizing overall market sentiment. In early Asian trading, S&P 500 futures rose 0.5% and Nasdaq 100 futures advanced 1.2%. U.S. tech stocks previously suffered a short-term pullback on concerns over an overheated AI-driven rally but have since stabilized. Investors are now turning their focus to the upcoming Q2 earnings season, seeking to verify whether massive investments in AI infrastructure can translate into tangible corporate profits.
2. Crude Oil Prices Edge Down on Improved Supply Outlook
International crude oil prices posted modest losses, with Brent crude falling 0.7% to settle at USD 71.65 per barrel. The decline was driven by two key factors. First, energy shipments through the Strait of Hormuz continued to recover, easing market concerns over supply disruptions. Second, OPEC+ signaled a supply increase, with member states supporting a modest rise in collective production quotas next month, which capped oil price gains.
3. Updates on Precious Metals, Forex and U.S. Treasury Markets
Precious metals traded mixed. Gold gave up early gains to stabilize at around USD 4,175 per ounce, while silver edged up 0.4% to approximately USD 62.74 per ounce.
The Japanese yen remained under persistent depreciation pressure. Goldman Sachs revised its one-year USD/JPY forecast higher from 155 to 165. The pair traded at 161.54 in early Asian session. Kamakshya Trivedi, a strategist at Goldman Sachs, explained that multiple macro factors — including persistently higher long-term U.S. Treasury yields, low U.S. recession risks, lingering fiscal concerns, and the Bank of Japan’s gradual pace of rate hikes — will continue to weigh on the yen.
The South Korean won traded steadily after rebounding from its lowest level since 2009 late last week. Sources revealed that the South Korean government has made pre-emptive preparations for capital flows related to SK Hynix’s ADR issuance. In addition, South Korea has long been optimizing market access for foreign investors and promoting 24-hour RMB trading, as part of its efforts to facilitate the inclusion of the RMB in the MSCI Developed Market Index.
U.S. Treasury cash trading resumed after the U.S. holiday, with prices largely unchanged in early trading. With a light economic calendar this week, auctions for 10-year and 30-year U.S. Treasuries have become the focal point of the sovereign debt market.
Market participants are closely watching the minutes of the Federal Reserve’s June meeting. Fed Chair Kevin Walsh recently softened his hawkish stance on inflation, acknowledging easing price pressures. Coupled with weaker-than-expected U.S. employment data, traders have scaled back expectations for near-term Fed rate hikes, setting the tone for this week’s Treasury auctions.
4. Overall Market Outlook
Investors remain cautious as the new half-year begins, balancing potential energy market shocks from Iran-related geopolitical tensions and the sustainability of the AI-fueled tech rally. In the short term, the trajectory of global tech stocks, U.S. corporate earnings results, U.S. Treasury auction outcomes and Federal Reserve policy signals will dominate market movements.
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