Asian stock markets moved mostly sideways on Monday, with investor sentiment weighed down by escalating tensions in the Middle East and a cautious outlook ahead of several central bank meetings this week.

The ongoing conflict between Iran and Israel further clouds global risk perception. Furthermore, the market’s attention is drawn towards rate decisions expected from various major central banks, including the U.S. Federal Reserve, Bank of Japan, and the People’s Bank of China.

China’s Economic Signals Keep Markets Stable

Mainland Chinese indexes displayed negligible changes:

• Shanghai Composite: +0.06%

• CSI 300: +0.03%

• Hang Seng: -0.2%

Recent official data indicated that China’s industrial production growth fell slightly short of expectations in May, reflecting ongoing challenges from U.S. trade tariffs. Nevertheless, retail sales growth surprised positively, indicating robust domestic consumption despite persistent deflationary pressures.

Keep an eye on retail, industrial, and inflation indicators for China using the Entreprenerdly Economics Calendar API.

Market Players Await Global Policy Decisions

Investors remain in a cautious mode ahead of several key monetary policy announcements:

• Bank of Japan (Tuesday): Likely to clarify its gradual exit from ultra-loose monetary policy.

• U.S. Federal Reserve (Wednesday): Expected to maintain current rates, though focus on Chairman Powell’s comments will give insights into future easing strategies.

• Bank of England, Swiss National Bank, and PBoC: All scheduled to release rates later this week.

As monetary dynamics globally remain unstable, investors can analyze sectoral and index valuation trends throughout Asia using the Entreprenerdly API, which gives P/E ratios and historical performance data.

Outlook

While Chinese consumption showcases surprising strength, the combination of geopolitical risks and uncertain central bank signalings has left Asian equity markets stagnant. A clearer trend may only emerge following the wave of policy announcements this week.