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Tuesday, June 16, 2026

Asia Market Movers: JGBs steady, Nikkei eases from record high as BOJ rate decision looms

Tuesday, 16 Jun, 2026

Central Banks

JGBs steady, Nikkei eases from record high as BOJ rate decision looms

The relative calm in JGBs ahead of the decision reflects a market that has already done its pricing work. A hike to 1% is not the story; Deputy Governor Uchida's forward guidance at the 0630 GMT brief

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News

GM in talks with Lockheed to make weapons parts as Pentagon seeks to restock

The talks reflect a structural shift in Pentagon procurement strategy rather than a near-term catalyst for either stock. Lockheed's supply-chain bottlenecks are a known constraint on its ability to sc

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Central Banks

PBOC is expected to set the USD/CNY reference rate at 6.7605 – Reuters estimate

The People’s Bank of China is due to set the daily USD/CNY reference rate at around 0115 GMT (2115 US Eastern time), a fixing that remains one of the most closely watched signals in Asian foreign exch

Commodities

Analysts back Iran deal as oil price catalyst but warn peace dividend won't be instant

The analyst consensus is constructive on risk assets but explicitly not euphoric. Oil majors are flagged as likely to give back gains as the war premium unwinds, with BP and Shell already underperform

Central Banks

BOJ hike certain, RBA and Fed on hold as Iran deal reshapes central bank outlook

The Iran peace framework has effectively superseded this week's central bank calendar as the dominant market driver, with oil price direction doing more work on currencies like the Australian dollar t

News

New Zealand data: May 2026 Food Price Inflation +1.0% m/m (prior flat at 0%)

Small wiggle only for the NZD on this. May 2026 Food Price Inflation +1.0% m/m prior 0% for the y/y +3.2%

Stock market update

Hedge funds dust off pre-war playbooks as Iran deal reshapes market outlook - noodle pivot

The trade is essentially a reversal of the war premium across asset classes: long bonds, short dollar, long Asian equities and currencies against a backdrop of fading Fed hike expectations. The two-ye

Commodities

Barclays sees gold hitting $4,900 as Iran-driven correction fades

Gold's proximity to Barclays' $4,150 fair-value estimate sets up a technically cleaner entry point for buyers who accept the structural case. The key near-term variable is whether the Iran peace frame

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Central Banks

Bank of Japan today - preview - set to lift rates to 31-year high as Iran deal clouds path

A hike to 1% is essentially fully priced by markets, so the immediate yen and JGB reaction will hinge on Deputy Governor Uchida's tone at the post-meeting briefing. Any signal of a faster-than-expecte

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