China Stocks Climb as Trump Announces Ceasefire

CSI 300 increased to a 4-week high of 3912.00 Index Points.

Over the past 4 weeks, Shanghai Shenzhen CSI 300 Index gained 1.31%, and in the last 12 months, it increased 13.09%.

The S&P/ASX 200 climb nearly 1% to 8,557 on Tuesday, snapping a five-session losing streak, as investor sentiment improved on news of a tentative ceasefire between Israel and Iran, easing concerns over a broader regional conflict.

US President Donald Trump announced what he described as a "complete and total" ceasefire aimed at ending the twelve-day conflict between the two nations.

Trump indicated that the ceasefire was set to begin late on Monday, with Iran halting its attacks first, followed by Israel in the coming hours.

On the domestic front, focus is shifting to tomorrow’s monthly CPI release for clues on the RBA's monetary policy outlook.

Most stocks traded in green, led by strong gains in mining and banking sectors.

On the downside, energy stocks lagged, with Woodside Energy Group plunging 6.5% and Santos declining 0.8% amid falling oil prices.

Meanwhile, Virgin Australia Holdings and Greatland Resources are set to debut on the ASX Tuesday, attracting strong investor attention.

The US dollar index fell to around 98.2 on Tuesday, extending its decline from the previous session after President Donald Trump announced a ceasefire agreement between Iran and Israel, dubbing the conflict “The 12-Day War.” Markets also largely shrugged off Iran’s retaliatory strike on a US base in Qatar, which caused no casualties, while Tehran’s decision to avoid targeting the Strait of Hormuz helped ease concerns over oil supply disruptions.

Adding to the dollar’s weakness, Federal Reserve Governor Michelle Bowman said she could support a rate cut in July if inflation remains subdued, echoing dovish remarks from Governor Christopher Waller.

Traders responded by ramping up bets on monetary easing, now pricing in roughly 55 basis points of rate cuts by year-end.

Investor focus now shifts to Fed Chair Jerome Powell’s semi-annual testimony before Congress, where markets will look for further guidance on the central bank’s policy trajectory.

The Nikkei 225 Index jumped 1.3% to above 38,800 while the broader Topix Index gained 1.2% to 2,794 on Tuesday, ending a three-day losing streak after US President Donald Trump announced that Iran and Israel had agreed to a ceasefire, calling the conflict “The 12-Day War.” Investors also appeared to look past Tehran’s retaliatory strike on a US military base in Qatar which caused no casualties.

Moreover, Iran avoided targeting the critical Strait of Hormuz, easing concerns over a wider disruption to global oil supplies.

Domestically, investors continued to assess the outlook for Bank of Japan monetary policy as the central bank signaled openness to further interest rate hikes.

Technology stocks led the charge, with strong gains from Lasertec (9.1%), Disco (3%), Tokyo Electron (4.8%), and SoftBank Group (2.8%).

South Korea's composite consumer sentiment index increased by 6.9 points to 108.7 in June from 101.8 in May, according to data released by the Bank of Korea on Tuesday.

A reading above 100 indicates an improvement in outlook, while a reading under 100 suggests pessimism.

Sentiment toward current living standards rose by two points to 92, while sentiment on the future outlook grew four points to 101.

The outlook for future household income was three points higher at 102, and sentiment for future household spending climbed two points to 110.

Optimism regarding current local economic conditions increased by 11 points to 74, and the reading for future domestic economic conditions was 16 points higher at 107.

President Donald Trump announced on Truth Social that Israel and Iran had agreed to a tentative ceasefire set to begin around midnight Washington time on Monday, following U.S.-ordered airstrikes on Iran’s nuclear facilities.

Trump said the accord aims to bring a lasting end to the conflict, referring to it as “THE 12 DAY WAR.” He praised both nations for having the “Stamina, Courage, and Intelligence” to reach the agreement.

According to Reuters, an Iranian official confirmed Tehran accepted the U.S.-brokered deal, though Israel has yet to comment.