Asia Stocks Eye Best Quarter Since 2009, Yen Drops: Markets Wrap

(Bloomberg) — Asian equities were on track for their biggest quarterly gain in 17 years as technology stocks rallied on optimism over the artificial-intelligence trade. The yen slid to its weakest level against the dollar since 1986.

The MSCI Asia Pacific Index rose 0.8% on the last trading day of the quarter, after swinging between gains and losses earlier Tuesday. The gauge has climbed 21% over the past three months, with South Korea’s Kospi index leading as the world’s best-performing major equity benchmark this year. Samsung Electronics Co. has gained about 98% for the three months through June, while SK Hynix Inc. has surged around 225%.

The yen extended losses on Tuesday to weaken beyond 162 per dollar. The currency’s slide will generate unease in Japan and put traders on high alert for authorities wading into the market.

Global equities are on track for their best quarter in almost six years as investors piled into companies seen as key beneficiaries of the AI buildout, from Asian chipmakers to upstream suppliers. Investors are now turning their focus to US-Iran talks on Tuesday and June US payrolls data on Thursday that may offer clues on whether the Federal Reserve will keep interest rates higher for longer.

“After a robust quarterly gain, the next test is consistency,” said Hebe Chen, an analyst at Vantage Global Prime. “Earnings, AI demand and margin growth will need to prove that Asia is not just riding the global AI story, but becoming a leading engine.”

The resurgence in stocks has defied skeptics, coming in the face of war, an oil supply shock and inflation jitters. Since bottoming three months ago, the S&P 500 has staged one of the swiftest rebounds this century, gaining 20% from its March 30 low to its June 2 peak — something it has done just three other times since 2000.

In Asia, Japan’s Nikkei 225 Stock Average has gained over 37% this quarter — the best three-month performance on record. The Kospi has climbed about 68%, the strongest advance since 1998. However, after a banner year for Chinese stocks on the back of AI advances, 2026 is not going well.

“We continue to believe strongly that the action in the tech sector will continue to be the main driver in the stock market,” said Matt Maley, chief market strategist at Miller Tabak.

Elsewhere, Brent slipped ahead of the expected US-Iran talks in Doha.

The commodity, trading around $72.55 a barrel, is headed for the biggest quarterly decline since the pandemic as flows through the Strait of Hormuz accelerated following progress on a peace deal, with Morgan Stanley warning of a potential glut.

Gold slipped below $4,000 an ounce. The yellow metal has fallen more than 15% this quarter, the worst performance since the quarter ended June 2013.

A Bloomberg gauge of the dollar climbed 0.2% Tuesday, while Treasuries were little changed.

Attention in Asia is on the yen. While the weaker Japanese currency has boosted exporters’ profits and helped propel the country’s stocks to record highs, it has also raised import costs, squeezed households and added to political pressure on Prime Minister Sanae Takaichi’s government.

The currency breached the 161.95 mark versus the greenback in New York trading Monday, passing the nadir it touched in July 2024 during an earlier campaign to shore up the exchange rate. It extended its decline to 162.40 in Tokyo on Tuesday, even after jawboning from Chief Cabinet Secretary Minoru Kihara. Subsequent comments from Finance Minister Satsuki Katayama had little immediate impact.

“It’s the 1980s all over again for the yen,” said Tim Waterer, chief market analyst at KCM Trade. “The yen is now getting uncomfortably weak from an imported inflation standpoint.”

Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 11:45 a.m. Tokyo time Nikkei 225 futures (OSE) rose 0.6% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng fell 1.3% The Shanghai Composite fell 0.2% Euro Stoxx 50 futures rose 0.4% Currencies

The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1405 The Japanese yen fell 0.1% to 162.13 per dollar The offshore yuan was little changed at 6.7973 per dollar Cryptocurrencies

Bitcoin fell 0.5% to $59,922.25 Ether fell 1.5% to $1,590.61 Bonds

The yield on 10-year Treasuries was little changed at 4.37% Japan’s 10-year yield advanced three basis points to 2.665% Australia’s 10-year yield declined two basis points to 4.72% Commodities

West Texas Intermediate crude fell 0.5% to $70.42 a barrel Spot gold fell 1.4% to $3,959.95 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Aya Wagatsuma and Winnie Hsu.

©2026 Bloomberg L.P.