1947 ET - Japanese stocks may remain rangebound amid continued uncertainty over the Middle East conflict and following recent sharp gains driven by enthusiasm for artificial intelligence. Nikkei futures are up 0.2% at 70000 on the SGX. The dollar is at 161.46 yen, compared with Y160.98 as of Friday's Tokyo stock market close. Investors are focusing on developments in the Iran conflict and crude oil prices. The Nikkei Stock Average rose 1.5% to 69744.07 on Friday. (kosaku.narioka@wsj.com)
1934 ET - With oil prices dropping sharply in mid-June, market certainty that the Reserve Bank of New Zealand will raise interest rates on Wednesday has appropriately reduced. There is unequivocally less urgency to hike now, says Sharon Zollner, chief economist at ANZ. However, she still expects a hike, as getting the official cash rate off its cycle lows is the best decision from a risk management point of view, Zollner says. The New Zealand dollar has also dropped sharply, in an easing of monetary conditions, she notes. Saying hikes are imminent but not today for a second time in six weeks may or may not be seen as credible, she adds.(james.glynn@wsj.com; X @JamesGlynnWSJ)
1931 ET - Westpac expects the Reserve Bank of New Zealand to leave its official cash rate on hold at 2.25% at its policy meeting on Wednesday. Much has changed over the past six weeks, most notably oil prices have fallen much more rapidly than expected, the bank says in a note to clients. The related moderation in inflation pressure gives the RBNZ more time to wait-and-watch how the economy is tracking, especially with a large amount of important economic data to be released after the July review, it adds. Still, forward guidance should remain consistent with a lift in the OCR this year, the bank adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)