[MARKET ANALYSIS] Asia-Pac stocks trade mixed as US-Iran tit-for-tat strikes and agreement to stand down highlights the frailty of the ceasefire

APAC Stocks: Mixed

• Asia-Pac stocks begin the week mixed, heading closer to month- and quarter-end, while participants reflected on the geopolitical developments over the weekend with the US and Iran conducting tit-for-tat strikes, although the sides have since agreed to halt attacks and will meet for talks this week.

ASX 200: +0.2%

• Trades rangebound with the index kept afloat by strength in tech, telecoms, healthcare and the consumer sectors, while utilities, industrials and real estate lag. Furthermore, price action is contained in the absence of any pertinent data and with the ACCC announcing that the excise tax cut on fuel is to be lowered from AUD 0.32/litre to AUD 0.16/litre from July 1st to August 2nd.

Nikkei 225: -0.6%

• Continued its pullback from recent record highs and slipped beneath the 69,000 level amid tech-related weakness, although the index is off today's worst levels as participants also digest strong Retail Sales data and reports that the government is to call for “appropriate” monetary policy in its basic policy guidelines, in an apparent effort to dissuade the BoJ from further hiking rates.

Hang Seng & Shanghai Comp: Hang Seng +2.1% / Shanghai Comp +0.2%

• Chinese markets are positive, albeit to varying degrees, with outperformance in Hong Kong amid strength in biotech and tech stocks, while the upside in mainland is contained after somewhat mixed industrial profits data and despite the PBoC conducting overnight reverse repo operations as previously flagged.

US Equity Futures: Positive

• Marginally edged higher but with gains capped as the geopolitical escalation between the US and Iran over the weekend and agreement to stand down highlights the frailty of the ceasefire.

European Equity Futures +0.1%

• Indicate a marginally positive cash market open with Euro Stoxx 50 futures up 0.1% after the cash market closed with losses of 0.7% on Friday.