Daily Fundamental Analysis: Asian Stocks Rise as Retail Sales in China Beat Expectations

Asia-Pacific markets rose on Monday amid Israel-Iran tensions and new Chinese economic data.

China’s retail sales grew 6.4% in May 2025, exceeding forecasts and marking the fastest growth since late 2023. While retail shows promise, other indicators lag: industrial output grew 5.8%, fixed-asset investment 3.7%, both below expectations. Property investment declined 10.7%.

Stock futures edged higher amid Israel-Iran tensions and oil price spikes. Dow Jones Industrial Average futures rose 0.02%, S&P 500 futures 0.14%, and Nasdaq 100 futures 0.19%., following Friday’s sell-off where the Dow fell 1.79%, S&P 500 1.13%, and Nasdaq 1.30%.

Crude oil futures rose over 3% Sunday after Israel struck Iranian gas facilities, sparking supply disruption concerns. U.S. crude climbed 3.7% to $75.68, while Brent gained 4.94% to $77.92.

Both oil and gold prices rose as investors sought safe havens. Weekend attacks on energy facilities continued, with Iran threatening to close the Strait of Hormuz oil route.

Markets await  Wednesday’s Fed decision, with 97% odds of unchanged rates per CME’s FedWatch. Rising oil prices decrease chances of monetary easing.

In the forex market, the US dollar showed weakness against major currencies in early trading today. EURUSD maintains trading above the psychological level 1.1550. USDCAD fell to its lowest level since October of last year.

Gold prices retreated today after reaching its highest level since April on Friday as geopolitical tension in the Middle East intensifies. The precious metal is trading around the $3,415 levels.

And in the crypto market, bitcoin rebounded in today’s trading after 3 consecutive days of continuous declines. The cryptocurrency gained 1.7% today breaking above $105,000 level.