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Today i.e. on June 18, 2026, tremendous all-round buying is being seen in the Asian stock markets amid extremely contradictory signals from the global markets. On one hand, the American Wall Street closed down by more than 1% on Wednesday night due to the harsh statements of the Federal Reserve, while on the other hand, Asian markets have created history this morning.
Japan’s leading index Nikkei 225 has crossed the magical figure of 71,000 for the first time in history, while South Korea’s benchmark index Kospi (KOSPI) has also reached its new lifetime high record level. Let us understand in detail what are the main factors working behind this bumper rally in Asian markets today despite the fall in US markets.
5 biggest reasons for the mega boom in Asian markets today (Key Market Drivers)
The following global and regional triggers are primarily guiding the spectacular rally in Asian equity markets this morning:
1. End of US-Iran War and huge fall in oil prices
Biggest booster dose for Asian markets Official end of the war between America and Iran doing. US President Donald Trump has signed an interim agreement (MoU) at the Versailles Palace in France to end the war with Iran and reopen the Strait of Hormuz.
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Crude oil boom: After this historic peace agreement, the supply of crude oil in the global market is expected to be smooth. Brent crude fell 1.12% to $78.66 per barrel While US West Texas Intermediate (WTI) slipped 1.28% to trade at $75.81. Oil falling below $79 is the biggest positive news for the economies and companies of heavy energy importing countries like India and Japan.
2. Bumper buying in tech and semiconductor stocks
Tech giants have played a major role in driving Asian indices higher:
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South Korea (KOSPI): Kospi index today jumped more than 1%. Chip maker giants this boom SK Hynix I came in Huge rise of 3.45% Received support from, which has touched its new all-time high. Along with this, shares of tech giant Samsung Electronics also registered a rise of 1.23%. However, the Kosdaq small-cap index of smaller shares, in contrast, slipped 0.5%.
3. Historical record of Japan’s Nikkei 225
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2% blast in Nikkei: The Japanese market is in complete control of the bulls today. Nikkei 225 Index Crossed historical level of 71,000 for the first time with a huge gain of 2%. At the same time, Japan’s broader ‘Topix’ index is also trading with a strength of 1.27%.
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Other Asian indices: Australia’s S&P/ASX 200 index is trading mostly flat today with no changes. At the same time, Hong Kong’s Hang Seng Index Futures was seen at the level of 24,510, which is marginally above its previous closing level (24,493.95).
On the other hand: Why did American markets fall by more than 1%?
While Asia is celebrating, US markets closed in the red on Wednesday with further heavy losses. Both the S&P 500 and Nasdaq indexes lost more than 1%.
| American index | closing level | Decline (points/percentage) |
| Dow Jones | 51,492.55 | ↓ 507.12 points (0.98%) |
| S&P 500 | 7,420.10 | ↓ 91.25 points (1.21%) |
| Nasdaq Composite (Nasdaq) | 26,021.66 | ↓ 354.69 points (1.34%) |
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Reason for the decline (Hawkish Fed): Newly appointed Chairman of the US Federal Reserve Kevin Warsh Adopted a tough stance (Hawkish Tone) in his first press conference. He made it clear that the US inflation rate (3.8%) is still well above the Fed’s mandated target of 2% and the central bank is committed to stabilizing prices.
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Fear of rate hike: Fed raised interest rates for the fourth consecutive meeting Stable at 3.5%-3.75% So he kept it, but removed the old hints of ‘being soft’ from his statement. Now 9 out of 18 Fed officials are predicting a rate hike by the end of this year, due to which traders are assuming that loans will become more expensive in America by September or October.
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Strong Economic Data: in the month of May in America Retail Sales figures better than expected Have been. Retail sales grew 0.9% in May compared to a 0.4% decline in April (while the estimate was only 0.5%). Strong retail sales give the Fed more grounds to keep interest rates high or raise them.
Latest situation of bond market, dollar and commodity (Gold & Silver)
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Rise in Treasury yields: There was selling in the bond market after the strict signals from the Fed, due to which the yield increased. US 2-year treasury yield jumps 16 basis points 4.207% Reached, which is the highest level since February 2025. The 10-year yield also fell to 4.461%. Its effect was also visible on Japanese bonds and Japan’s 10-year JGB yield increased to 2.620%.
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Dollar at 2 month high: US Dollar Index due to increasing possibilities of rate hike this year 100.31 It has strengthened at the level of Rs. 10,000 and remains at the highest level in the last 2 months. Due to this strengthening of the dollar, the Japanese Yen (JPY) has weakened to 160.760 per dollar, while the Euro is trading at $1.1511 and the Pound at $1.3318.
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Strong recovery in gold and silver: Gold prices saw a spectacular bounce-back as global uncertainty eased due to the US-Iran peace deal and oil fell. Today after a 1.7% decline on Wednesday Spot Gold jumped 1.5% to $4,322.41 an ounce Has reached. At the same time, after falling 3% in the last session, today Spot silver improved 2.2% to $69.51 an ounce But is doing business.
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