Asian Markets Stay Rangebound as Geopolitical Risks and Central Bank Meetings Weigh on Sentiment

Asian stock markets traded largely sideways on Monday, with investor sentiment dampened by heightened tensions in the Middle East and caution ahead of a busy central bank calendar this week.

The prolonged conflict between Iran and Israel continued to cloud global risk appetite. Meanwhile, anticipation of rate decisions from major central banks—including the U.S. Federal Reserve, Bank of Japan, and the People's Bank of China—kept equities from gaining momentum.

China's Mixed Economic Signals Keep Markets Flat

Mainland Chinese indexes showed little movement:

• Shanghai Composite: +0.06%

• CSI 300: +0.03%

• Hang Seng: -0.2%

Official data released Monday showed that industrial production in China rose slightly below expectations in May, highlighting continued strain from U.S. trade tariffs. However, retail sales growth surprised to the upside, suggesting resilient domestic consumption despite persistent deflationary pressures.

Track retail, industrial, and inflation indicators for China and other global economies using the Economics Calendar API, which offers real-time macroeconomic data releases.

Regional Markets Brace for Global Rate Decisions

Market participants are in a holding pattern ahead of several critical monetary policy announcements:

• Bank of Japan (Tuesday): Expected to provide clarity on its gradual exit from ultra-loose policy.

• U.S. Federal Reserve (Wednesday): Forecast to hold rates steady, though attention will center on Chair Powell's comments for guidance on future easing.

• Bank of England, Swiss National Bank, and PBoC: All scheduled for rate decisions later this week.

With global monetary dynamics in flux, investors can assess sectoral and index valuation trends across Asia via the Sector Historical (Market Overview) API, which provides sector-level P/E ratios and historical trends.

Outlook

While Chinese consumption is showing surprising resilience, ongoing geopolitical risks and uncertain central bank guidance have left Asian equity markets in a state of inertia. A clearer trend may emerge only after this week's wave of policy signals plays out.