Bloomberg Daybreak: Asia Edition Stocks Drop, Oil Surges as Israel Attacks Iran
Jun 13, 2025
Natalia Gurushina, Chief Economist for EM Fixed Income Strategy at VanEck, dives into the economic chaos following Israel's attack on Iran. She discusses how this geopolitical tension has led to a surge in oil prices and impacted stock markets. The conversation also covers the decline of the U.S. dollar and its implications for Asian currencies. Additionally, Gurushina analyzes inflation trends and bond market volatility, offering insights into China's economic challenges and the potential for growth in emerging markets.
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Israel's Strike Sparks Market Moves
- Israel launched preemptive strikes on Iran's nuclear and missile sites, signaling a prolonged conflict until threats are neutralized.\n- This escalation immediately impacted markets with oil prices surging and safe haven assets gaining appeal.
Dollar Weakness Deepens Amid Tariff Worries
- The US dollar weakened to a three-year low due to tariff uncertainties and concerns over US growth impact.\n- Strong US Treasury auctions and a softer inflation outlook further pressured yields down, enhancing dollar's decline.
Asian Currencies Show Broad Strength
- Asian currencies like the yen, Korean won, and Taiwanese dollar are appreciating due to relative undervaluation and trade negotiations.\n- The Chinese yuan's appreciating trend anchors Asian currencies despite concerns over its transparency.