Today's Edition
HONG KONG (AFP)
Oil prices slipped Wednesday following the previous day's surge, but investors remained on edge, fearing a US intervention in the Israel-Iran conflict.
Iran and Israel exchanged missile strikes for the sixth consecutive day.
Leaving the G7 summit in Canada a day early on Monday, US President Donald Trump said he was aiming for a "real end" to the conflict, not just a ceasefire.
He later shared a series of social media posts that stoked speculation he could be planning to join Israel in its strikes on Iranian military and nuclear sites.
Trump's comments sent oil prices spiking more than four percent on Tuesday due to fears that an escalation of the conflict could hammer supplies from the crude-rich region.
But while both main contracts slipped on Wednesday, investors remain on edge over any negative developments.
Equity markets Hong Kong, Sydney, Singapore, Mumbai, Wellington, Bangkok, Manila, and Jakarta all sank, though Tokyo, Seoul, and Taipei edged up.
London gained in the morning, even as data showed UK inflation slowed less than expected in May.
Paris and Frankfurt also rose.
The mixed day in Asian stocks followed a weak day on Wall Street, where a below-forecast reading on US retail sales for May -- dragged by a slowdown in auto sales -- revived fresh worries about the world's top economy.
That came as another report showed factory output fell unexpectedly.
Still, they did provide a little hope that the Federal Reserve will eventually cut interest rates, with traders betting on two by the end of the year, according to Bloomberg News.
Investors will be keeping track of the bank's latest meeting as it concludes later in the day, with most observers predicting it will stand pat.
However, it is also due to release its rate and economic growth outlook for the rest of the year, which are expected to take into account the impact of Trump's tariff war.
"The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East," said KPMG senior economist Benjamin Shoesmith.
