Japan, South Korea Stocks Reach Fresh Record Highs

• The European Central Bank (ECB) reported monetary developments for the euro area as of April 2026, focusing on M3 deposit growth. • Annual growth for household deposits remained steady at 2.9%, while deposits from non-financial corporations slowed to 3.8% from 4.2% in March.

• The US and Iran reached a provisional agreement on June 1, 2026, for a 60-day ceasefire to facilitate the resumption of nuclear program negotiations. • This geopolitical development led to a broad 2% decline in energy prices and a reduction in market-implied volatility.

• On May 27, Citi analyst Patrick Cunningham lowered the price target for Dow Inc. (NYSE:DOW) from $48 to $41. • Despite the reduction in the price recommendation, Cunningham reiterated a "Buy" rating for the stock.

• India's stock trading value reached a record high as passive funds executed massive trades to align portfolios with revised MSCI index weightings. • The surge was driven by portfolio adjustments, though local equities slumped 1.5% during the final hour of trading on Friday as the changes took effect.

• Stock markets in Japan and South Korea reached new record highs on Monday, driven primarily by investor enthusiasm for the artificial intelligence boom and advanced technology stocks. • Oil prices rose by more than 2% as the market reacted to the fragility of the Iran war ceasefire and ongoing U.S.-Iran negotiations.

• Corporate India concluded FY26 with strong earnings growth, characterized by double-digit gains in Profit After Tax (PAT), sales, and EBITDA according to a report by Motilal Oswal. • The growth was primarily driven by the financials, metals, and oil marketing companies (OMCs) sectors, with mid-cap companies notably outperforming larger entities.

• India's manufacturing sector experienced its fastest expansion in three months during May, driven by sustained demand. • Despite the growth, businesses faced some of the most intense cost pressures seen in nearly four years.

• Wall Street heads into a data-heavy week with the May nonfarm payrolls report due June 5 and Broadcom’s quarterly earnings later in the week, according to Reuters coverage republished by the Economic Times. • The S&P 500 has risen for nine straight weeks, is up more than 10% this year, and the Nasdaq Composite has gained about 16% as AI-linked technology shares keep driving the rebound.

• South Korea's Kospi index reached a record high on Monday, bolstered by a more than 3% surge in Samsung shares, which also hit an all-time high. • The rally occurred despite mixed trading across Asia-Pacific markets as investors reacted to ongoing uncertainty regarding U.S.-Iran negotiations.

• India and the US will initiate a four-day round of talks starting Monday to finalize the details of a proposed interim trade agreement. • Market analysts, including Geojit Investments' Dr. V K Vijayakumar, note that Foreign Portfolio Investors (FPIs) are shifting capital from India to the US, Japan, South Korea, and Taiwan.

• SoftBank has pledged €75 billion to construct Europe's largest artificial intelligence facility in France. • The investment is led by CEO Masayoshi Son, who aims to position France as the central hub for his global AI expansion strategy.