Asian Markets Mixed Despite Wall Street's Strong Quarter; Cautious Start Seen for Dalal Street

Mumbai, July 1: Indian benchmark indices are likely to open on a cautious note on Wednesday as mixed trading across Asian markets offset the positive lead from Wall Street, while a rebound in crude oil prices and lingering geopolitical tensions kept investors on guard at the start of the new quarter. 

Japan’s Nikkei 225 up 0.3% as the yen hit multi-decade lows, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%. South Korea’s Kospi was down 1.9%. 

Investor sentiment across the region also remained restrained by expectations that the US central bank could raise interest rates later this year. 

Wall Street Posts Strongest Quarter Since 2020 

The mixed performance in Asia followed a positive session on Wall Street, where the S&P 500 and Nasdaq Composite ended June by posting their strongest quarterly performance since 2020. The Dow Jones Industrial Average also finished higher. 

U.S. stocks were supported by optimism over artificial intelligence-led earnings growth, easing concerns over trade tensions and expectations that the Federal Reserve could still deliver interest-rate cuts later this year if inflation continues to cool. Investors largely looked past quarter-end portfolio rebalancing and are now awaiting Thursday’s U.S. non-farm payrolls report for fresh clues on the central bank’s policy outlook. 

Oil Climbs as Iran Rejects Talks 

Crude oil prices advanced after Iran ruled out meeting U.S. envoys, dimming hopes of an early diplomatic breakthrough and reviving concerns over geopolitical risks in the Middle East. 

Both Brent crude and U.S. West Texas Intermediate (WTI) futures rose, recovering some of the sharp losses recorded after the Israel-Iran ceasefire. Although oil prices remain well below the recent conflict-driven peaks, the rebound could temper sentiment in oil-importing economies such as India by raising concerns over inflation and the country’s import bill. 

Muted Opening Seen for Indian Markets 

For Indian equities, the positive undertone from Wall Street is likely to be counterbalanced by mixed Asian cues and firmer crude prices. While the record-setting rally in U.S. markets reflects healthy global risk appetite, investors on Dalal Street may prefer to remain cautious ahead of key U.S. economic data and amid uncertainty over geopolitical developments in the Middle East. 

Market participants are also expected to focus on stock-specific triggers and domestic institutional flows as the new quarter begins. Overall, the combination of mixed Asian markets, positive Wall Street and rising oil prices points to a subdued start for Indian benchmark indices. 

Source

• Exchanges