Bitcoin Falls Amid Concerns About Iran Conflict — Market Talk

0239 GMT - Bitcoin falls in early Asian trading as investors are cautious about risky assets amid concerns about an escalation in the U.S.-Iran conflict. President Trump rejected Iran's proposal for a seven-day ceasefire. A more meaningful decline in oil prices would ease inflation concerns and could soften expectations for higher interest rates, Tickmill's Joseph Dahrieh says in commentary. That would leave more room for bitcoin to rebound, he adds. Bitcoin is 1.2% lower at $83,571.80. ([email protected])0218 GMT - The outcome of the Trump-Xi summit was "modest but practical," Citi analysts say in a note. The renewed commitment to strategic stability would perhaps ease prospects of risk events such as new restrictions on Chinese AI infrastructure products and open-weight models as well as large-scale U.S. arms sales to Taiwan this year, the analysts say. Citi says there is mutual intent for leaders' attendance at APEC in Shenzhen in November and the G-20 summit in Miami in December. "Should that materialize, 2026 would see an unprecedented four Trump-Xi meetings, helping lower near-term risk of any breakdown in relations," the analysts say. ([email protected])0207 GMT - Asian currencies broadly weaken against the dollar. The global backdrop remains challenging for regional currencies, as elevated oil prices and high global yields continue to reinforce each other, MUFG Bank's Lloyd Chan says in a report. Middle East tensions are high, with no clear resolution to the disruption along the Strait of Hormuz nor when oil supply can be normalized, he adds. The U.S. dollar is 0.3% higher at 157.72 yen and 0.5% higher at 1360.60 won, while the Australian dollar is 0.1% lower at US$0.7018, LSEG data show. ([email protected])0041 GMT - Japanese government bond yields are higher as concerns about the Iran conflict and inflation continue. Higher imported energy costs, coupled with prospects of strong artificial intelligence-related investments, have raised expectations for the Bank of Japan's additional rate increases. Investors are focusing on developments in the Middle East and crude oil prices after President Trump rejected Iran's proposal for a seven-day ceasefire. The 10-year JGB yield is up 2 basis points at 3.095%. ([email protected]; @kosakunarioka)0017 GMT - Japanese stocks are higher after U.S. stocks gained on Friday following the easing of the selloff in U.S. Treasurys. Chip-related stocks are leading gains. Advantest is up 3.3%, SoftBank Group is 2.5% higher and Screen Holdings is up 4.3%. The dollar is at 157.58 yen, down from Y158.15 as of Friday's Tokyo stock market close. Investors are closely watching developments in the Middle East conflict after President Trump rejected Iran's proposal for a seven-day ceasefire. The Nikkei Stock Average is up 0.8% at 66877.70. ([email protected]; @kosakunarioka)2338 GMT - Voting patterns in Australia's northern state of Queensland often determine national election outcomes. Latest polling shows the right-wing One Nation party is still garnering strong support in the state, with its leader Pauline Hanson outpolling Anthony Albanese as preferred Prime Minister. The latest Newspoll shows Hanson has the support of 52% to 48% for Albanese. Labor's primary vote in the state has also dropped from 30% to 25%, while One Nation's primary vote rose to 36%. The party has also surged ahead of Labor on primary votes in the biggest state of New South Wales. ([email protected]; @JamesGlynnWSJ)The Reserve Bank of Australia has been setting the stage for an interest-rate increase this week for some time. A 25 basis-point hike seems locked in, with the central bank set to highlight upside risks to inflation and the unresolved war in the Middle East. It's the RBA's use of language that will be key. The bank clearly has doubts that it can achieve its inflation target within a reasonable time frame and is now putting less emphasis on protecting jobs. The RBA's rhetoric is likely to be direct, keeping the door open to a further hike in November. ([email protected]; @JamesGlynnWSJ)