Corporate profits in Australia fell 1.3% quarter-on-quarter in the first quarter of 2026, reversing an upwardly revised 5.9% increase in the previous quarter and missing market expectations of a 0.5% rise. The decline was mainly driven by a sharp drop in mining profits (-9.1% vs 8.0% in Q4). Lower profits were also recorded in accommodation and food services (-2.0% vs 5.7%) and financial and insurance services (-9.6% vs 3.1%). In addition, profit growth moderated in wholesale trade (4.5% vs 6.4%), transport, postal and warehousing (0.9% vs 8.1%), and professional, scientific and technical services (3.1% vs 9.2%). On the other hand, profits rose further in manufacturing (3.5% vs 2.7%) and construction (7.9% vs 4.3%), while rebounded in retail trade (5.9% vs -0.2%). On a yearly basis, corporate profits increased 3.2%, slowing from 4.2% in the previous period.

Indonesia’s S&P Global Manufacturing PMI rose to 50.0 in May 2026 from April’s ten-month low of 49.1, signaling broadly stable factory conditions. New orders expanded for a second straight month, with growth at its fastest since February. Yet export orders fell for a third month and at the steepest pace since August 2021, as Middle East conflict disruptions continued to weigh on trade. Output shrank again, though less sharply than in April, while raw material shortages forced firms to cut purchases. Backlogs of work increased for the first time since February, underscoring supply constraints, while employment slipped for a third month, albeit marginally. On prices, input cost inflation accelerated to its second-highest on record, driven by surging raw material prices, prompting the strongest selling price hikes since October 2013. Supplier performance deteriorated further amid delivery delays. Finally, business confidence improved slightly, with optimism still muted overall.

The Nikkei 225 Index declined 0.6% to around 66,500, while the broader Topix Index dropped 0.7% to 3,913 on Tuesday, as Japanese equities pulled back modestly from record highs amid ongoing geopolitical uncertainty. Reports indicated that Tehran had suspended talks with Washington in response to Israeli strikes in Lebanon, although President Donald Trump stated that negotiations remain underway. Domestically, markets are pricing in roughly a 78% probability that the Bank of Japan will raise interest rates again later this month as inflationary pressures linked to the Middle East conflict continue to build. Among individual stocks, notable decliners included Taiyo Yuden (-4.6%), Fujikura (-2.5%), Furukawa Electric (-2.0%), Mitsubishi Heavy Industries (-4.8%), and Toyota Motor (-2.8%). Meanwhile, SoftBank Group surged another 5%, extending gains after a technology-led rally on Wall Street sparked by the launch of a new PC chip.

US stock futures edged lower on Tuesday after the major indexes reached fresh record highs during the first trading session of June, as ongoing geopolitical uncertainties continued to drive market volatility. In regular trading on Monday, the Dow added 0.09%, the S&P 500 advanced 0.26%, and the Nasdaq Composite gained 0.42%, with all three benchmarks finishing at new all-time highs. Technology stocks led the rally following the debut of a new PC chip. Among the top gainers were Micron Technology (6.6%), Nvidia (6.3%), Oracle (9.9%), IBM (7.6%), and Dell Technologies (10.7%). In after-hours trading, Hewlett Packard Enterprise jumped 28% after providing a strong quarterly outlook and raising its full-year guidance. Investors are now awaiting the latest JOLTS job openings report, along with earnings results from Palo Alto Networks, Dollar General, and Victoria’s Secret, among others.

Gold traded below $4,500 per ounce on Tuesday after declining in the previous session, pressured by stalled peace negotiations between the US and Iran that kept inflation risks and interest rate expectations at the forefront. On Monday, Iranian media reported that Tehran had suspended communications with Washington in response to Israeli attacks in Lebanon. Meanwhile, President Donald Trump said discussions are still ongoing and suggested that a memorandum of understanding with Iran to reopen the Strait of Hormuz could be reached as early as next week. Markets are currently factoring in a Federal Reserve rate hike before year-end after US inflation accelerated, driven in large part by the Middle East conflict. Investors are now awaiting this week’s US monthly jobs report and comments from Fed officials for additional clues on the future path of monetary policy.

South Korea’s annual inflation rate accelerated to 3.1% in May 2026 from 2.6% in the previous month, surpassing market forecasts of 3.0%. It was the highest reading since March 2024, highlighting the deepening effects of higher oil prices amid the Middle East conflict, with food prices rising the most in three months (1.6% vs 0.3% in April). Inflation also accelerated for housing and utilities (1.8% vs 1.7% in April), transport (11.6% vs 9.7%), clothing and footwear (2.8% vs 2.1%), recreation and culture (5.0% vs 3.4%), education (1.3% vs 1.1%), tobacco (0.3% vs 0.1%), and furnishings, household equipment, and routine maintenance (2.6% vs 1.9%). Meanwhile, inflation was steady for communication (0.6%), restaurant and hotels (2.7%), and miscellaneous goods and services (4.1%). On a monthly basis, consumer prices increased by 0.5%, the same pace as in April. Still, it was the fastest monthly increase since September 2025 and exceeded market estimates of 0.3%.