Asian Stocks Rebound as Investors Buy the Dip Despite Rate Hike Concerns

Asian stock markets moved higher on Tuesday as investors returned to buy beaten down shares, particularly in the technology and semiconductor sectors. The recovery came after Israel and Iran signaled a temporary halt in attacks, easing some concerns about further escalation in the Middle East.

South Korea’s stock market rebounded strongly, rising 3.4% after falling more than 8% in the previous session. Japan’s Nikkei gained 0.9%, while the broader Asia-Pacific index outside Japan advanced 1.5%. Chinese blue chip stocks also edged higher after trade data showed exports rose 19.4% and imports increased 27.4% in May, both exceeding market expectations.

Bond Markets Remain Under Pressure

Despite gains in equities, bond markets continued to struggle as investors prepared for the possibility of further interest rate increases. Strong U.S. employment data reinforced expectations that the Federal Reserve could keep policy tighter for longer, with markets pricing in a significant chance of a rate hike later this year.

Oil Retreats While Dollar Stays Firm

Oil prices eased after recent gains, with Brent crude trading near $92.57 per barrel and U.S. crude around $90.62. The U.S. dollar remained supported against major currencies, while gold traded near $4,334 an ounce as investors weighed inflation risks and global economic uncertainty.