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Asian stocks cautious as Middle East tensions and Fed rate hike worries grip investors
Asian equities traded cautiously on Monday as lingering Middle East ceasefire uncertainty and expectations of further US interest rate hikes kept investors on the sidelines. Japan's Nikkei fell 1%, South Korea's Kospi dropped nearly 2%, and MSCI's Asia-Pacific index slipped 0.4%. Oil prices rose on supply fears, the dollar hovered near one-year highs, and AI stocks faced renewed pressure from rotation into cyclical sectors.
Jul 8, 2026 1 source