Asia FX steady as traders weigh fragile Iran ceasefire, busy data week By Investing.com

• The Bank for International Settlements (BIS) has warned that "exuberance" surrounding artificial intelligence could lead to a significant investment bust if the technology fails to deliver expected returns. • The BIS cautions that weak productivity gains may trigger a sharp pullback in funding for tech companies, potentially destabilizing the broader global economy.

• Asian markets experienced a sharp decline on Monday, with South Korea's Kospi crashing 3% at the open and Japan's Nikkei 225 falling 1%. • The market volatility is attributed to escalating tensions in the US-Iran conflict, though Japan's broader Topix index managed a slight gain of 0.43%.

• Asian equities traded cautiously on Monday, with Japan's Nikkei slipping 1% and South Korea's Kospi falling nearly 2%, dragging the MSCI Asia-Pacific index down 0.4%. • Market instability is being driven by lingering uncertainty regarding a Middle East ceasefire and investor fears that the US Federal Reserve may implement further interest rate hikes.

• Market participants are closely monitoring geopolitical tensions in West Asia and fluctuations in crude oil prices as primary drivers for upcoming market trends. • Investors will analyze domestic economic health through the release of Industrial Production (IIP) data, foreign exchange reserves, and final HSBC PMI readings for manufacturing and services.

• Asia-Pacific markets showed mixed results as investors weighed geopolitical tensions between the U.S. and Iran alongside corporate investment plans from major tech firms. • Regional indices saw varied movement, with Japan's NIKKEI falling 0.50% to 69,011.93 and South Korea's KOSPI dropping 0.88%, while Hong Kong's HSI rose 0.89% to 22,874.71.

• Approximately 96% of domestic stocks declined following the launch of twice-leverage ETFs for Samsung Electronics and SK Hynix. • BNK Investment & Securities reports that while semiconductor performance outlooks are being upgraded ahead of Q2 earnings, other sectors remain stagnant.

• Australian shares closed 0.7% higher on the S&P/ASX 200, driven primarily by gains in the technology and financial sectors. • The market rally followed a temporary easing of geopolitical tensions between the US and Iran, which provided immediate relief to global investors.

• South Korean stocks opened lower on Monday, June 29, as investors reacted to renewed geopolitical instability. • Market sentiment was dampened by uncertainty surrounding the fragile ceasefire between the U.S. and Iran, which contributed to rising oil prices.

• The BSE Sensex and Nifty50 opened in the green on Monday, with the Nifty50 trading above the 24,050 level. • Market sentiment remains cautious due to ongoing uncertainties surrounding the US-Iran conflict and a slight increase in crude oil prices.

• The market valuation of six top firms rose by Rs 88,678.1 crore during a recent holiday-shortened week, driven by escalating tensions between the US and Iran. • These geopolitical developments are encouraging Foreign Institutional Investors (FIIs) to reconsider India as an investment destination, despite relatively weak corporate earnings.

• Markets are preparing for a critical week from June 29 to July 3, 2026, highlighted by the release of US June nonfarm payrolls, unemployment rates, and average hourly earnings on Thursday at 8:30 AM ET. • Key international data includes Eurozone flash CPI on Wednesday—the first since the ECB hike—and a monetary policy decision from Colombia on Tuesday.