Asian stocks bounce as bonds lag amid easing tensions

Asian stock markets staged a tentative recovery on Tuesday, June 9, as easing Middle East tensions and renewed investor interest in technology shares provided a fragile respite from a global selloff. The rebound followed sharp declines on Monday, which were triggered by renewed hostilities between Iran and Israel.

The immediate catalyst for the stabilization was an announcement from Israel and Iran that they would halt attacks on each other for the time being. This de-escalation helped pull oil prices back from recent highs, with Brent crude easing to around $94 a barrel after pushing as high as $98 overnight. Analysts noted that shipping through the critical Strait of Hormuz remained severely restricted, however, continuing to pose a risk to energy flows and inflation.

South Korea’s Kospi index led the regional rebound, climbing over 3% after having plunged more than 8% on Monday. Japan’s Nikkei also edged higher, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose. Chinese blue-chip stocks gained slightly as trade data for May showed exports and imports beating forecasts, indicating some success in finding new markets despite trade hurdles and weak domestic...