Asian Shares Mixed As China Data Disappoints

(RTTNews) - Asian stocks turned in a mixed performance on Tuesday as investors paused to assess the durability of the relief rally fueled by the long-awaited U.S.-Iran preliminary deal to end their conflict.

The dollar remained near 10-day lows while gold traded higher at $4,328 an ounce, extending its recovery into a third consecutive session as a two-day policy meeting of the U.S. Federal Reserve gets underway later today.

Despite concerns over sticky inflation, the U.S. central bank is widely expected to keep rates on hold on Wednesday under new Chair Kevin Warsh.

Brent crude futures fell below $83 a barrel after U.S. President Donald Trump assured that the Strait of Hormuz will be "fully open" on Friday, the day the signing ceremony is scheduled for the framework agreement between Washington and Tehran to end their war in the Middle East.

China's Shanghai Composite index slipped 0.11 percent to 4,091.89 after retail sales and fixed investment figures for May disappointed investors.

Industrial production grew slightly more than expected in the month, offering some respite to investors worried about unbalanced growth.

Hong Kong's Hang Seng index slumped 1.40 percent to 24,493.95, dragged down by internet and technology stocks.

Japanese markets ended slightly higher after the Bank of Japan raised its interest rate to 1 percent, the highest since 1995, as it battles inflation caused by the Iran war.

"With underlying inflation approaching 2 percent, we need to be mindful of upward price risks. We will guide policy so that we won't fall behind the curve," Bank of Japan Deputy Governor Shinichi Uchida said at a press conference after the policy meeting.

The Nikkei average ended up 0.13 percent at 69,404.50, after having crossed the 70,000-point mark for the first time earlier. The broader Topix index dipped 0.21 percent to 3,991.14.

Seoul stocks extended their winning streak to a fourth straight session, driven by gains in semiconductor and defense stocks. The Kospi index soared 2.11 percent to 8,726.60.

Hanwha Aerospace jumped 9.1 percent and LIG D&A surged 18.6 percent on expectations of resumed arms exports following the U.S.-Iran peace agreement.

Australian markets recovered from an early slide to end marginally higher as the Reserve Bank of Australia kept its key interest rate unchanged for the first time this year, following three consecutive increases.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index closed 0.49 percent higher at 13,426.13, reaching its highest level in more than three months.

U.S. stocks rose sharply overnight, with the U.S.-Iran peace agreement and tumbling oil prices boosting sentiment.

President Donald Trump said a deal with Iran is "now complete" and authorized the "toll free opening" of the Strait of Hormuz and the immediate removal of the U.S. blockade of Iranian ports.

Media reports suggest that the U.S.-Iran ceasefire is likely to be extended for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.

While the Dow surged 0.9 percent to reach a new record closing high, the tech-heavy Nasdaq Composite soared 3.1 percent amid continued optimism over SpaceX and the artificial intelligence trade. The S&P 500 added 1.7 percent.