Executive summary

Market Overview: June 11, 2026

​Geopolitical Escalation: US launched a second day of strikes on Iran following a downed American helicopter and retaliatory Iranian attacks on US facilities in Bahrain, Jordan, and Kuwait. Iran threatened to close the Strait of Hormuz (refuted by US CENTCOM).

​Inflation Pressures: Driven by a 23.5% surge in energy costs from the Middle East conflict, annual US inflation spiked to 4.2% in May (the highest since April 2023). Monthly CPI rose 0.5%, though monthly core CPI slowed slightly to 0.2%.

​Monetary Policy Outlook: Sticky inflation and geopolitical risks have dampened Federal Reserve rate-cut expectations, with traders now pricing in a potential rate hike by October or December. Conversely, the Bank of Canada kept its overnight rate steady at 2.25%.

​Equities Sell-off: Wall Street and Asian markets dropped sharply due to geopolitical tensions and a heavy tech rotation. The Nasdaq 100 fell 2.0%, led by steep losses in chipmakers (SMCI plunged 28% on equity financing plans, Nvidia down 3.7%).

​FX & Fixed Income: The US Dollar remains strong on safe-haven demand. US Treasury yields bear-steepened, with the 10-year yield climbing to 4.546%. The Japanese Yen remains under heavy pressure, hovering near 160.52 per dollar.

​Commodities Divergence: Brent crude surged over 2% to near $95.20 a barrel on supply disruption fears. Meanwhile, gold plummeted into a bear market, dropping near $4,024 an ounce as rising interest rate expectations weakened its appeal.

Asia Market Quick Take – 10 June, 2026