Asian markets buoyed by energy and materials sectors

What happened: Asian markets traded mostly higher on Wednesday, buoyed by energy and materials sectors. This comes after strong gains in these sectors on Wall Street overnight, driven by higher commodity prices. However, markets ended mixed on Friday following Beijing's threat to retaliate against EU tariffs on Chinese electric vehicles, and regional inflation data underscored persistent price pressures. On Wednesday, markets were mostly lower due to Middle East tension and inflation concerns ahead of key U.S. CPI data.

Market impact: Energy and materials companies, such as those in the oil and gas, and mining sectors, saw gains due to higher commodity prices. Conversely, companies in sectors sensitive to trade disputes and inflation, like consumer goods and electronics, experienced losses. The dollar remained steady, while gold prices fell.

What to watch next: Investors should closely monitor the release of U.S. CPI data for May, scheduled for June 10, which could provide further insights into inflation trends. Additionally, the escalating U.S.-China trade dispute and any retaliatory measures from Beijing will continue to impact regional markets. Lastly, the ongoing Middle East tensions should be closely watched for any potential spillover effects on energy prices and regional markets.