US-Iran Talks Uncertain; Apple WWDC Set for June 8-12; Alibaba to Launch Key Chip Today.

White House: No Confirmation on Talks with Iran This Week

The White House has refrained from confirming whether U.S. officials will engage in further discussions with Iran or intermediaries this week. This follows President Trump's statement on March 23, indicating that Iran is "very eager to reach an agreement" and that a deal could be reached in as little as five days. White House Press Secretary Caroline Levitt emphasized that diplomatic discussions are sensitive and will not be communicated through the media, as the situation remains fluid.

Iran's Response

Iran has denied that its parliament speaker is negotiating with the U.S., labeling such reports as misinformation aimed at creating conditions for assassination. They assert that the U.S. has attempted to negotiate through intermediaries without receiving a response.

Fed's Rate Cut Outlook Amid Geopolitical Tensions

Federal Reserve Governor Miran stated that current short-term oil price fluctuations are insufficient to alter the expectation of four rate cuts this year. He believes the Fed should wait for more information before adjusting its policy outlook. Last week, the Fed maintained its benchmark interest rate, with Miran voting against it in favor of a 25 basis point cut.

Inflation Concerns

Goolsbee noted that new inflationary pressures from the Middle East situation have complicated the Fed's plans. With inflation already at concerning levels and the job market nearing full employment, inflation must be prioritized in policy considerations.

U.S. Energy Secretary on Strategic Oil Reserves

U.S. Energy Secretary Wright mentioned the possibility of releasing strategic oil reserves again, though he considers this likelihood very low. The U.S. has initiated a daily release of 1 to 1.5 million barrels from the Strategic Petroleum Reserve (SPR), which could expand to 3 million barrels if necessary.

Market Reactions to U.S.-Iran Developments

Following Trump's announcement to abandon bombing Iran's energy infrastructure, U.S. stocks surged, with the S&P 500 rising 1.15%, the Nasdaq up 1.38%, and the Dow Jones also increasing by 1.38%. Major tech stocks saw gains, including Nvidia (+1.7%), Apple (+1.41%), and TSMC (+2.8%).

Semiconductor Market Dynamics

Wedbush analysts reported a significant increase in DRAM and NAND storage prices, predicting a rise of over 100% by the first half of 2026. This trend is expected to benefit major storage manufacturers like Micron Technology (MU), Seagate Technology (STX), and Western Digital (WDC).

Notable Stock Movements

• Meta Platforms (META): Goldman Sachs views Meta's layoffs and budget cuts as a strategic realignment rather than a budget reduction for survival.
• Berkshire Hathaway (BRK.B): Announced a strategic investment in Tokyo Marine Holdings, acquiring a 2.49% stake for approximately $1.8 billion.

Hong Kong Market Activity

On March 23, net purchases of Hong Kong stocks reached HKD 29.7 billion, with notable buys in the Tracker Fund of Hong Kong (02800.HK) and Southern China Holdings (03033.HK).

Upcoming Earnings Reports

The Boao Forum for Asia 2026 will take place from March 24 to 27 in Hainan, focusing on shaping a common future. Key earnings reports are expected from Xiaomi Group (01810.HK), WuXi Biologics (02269.HK), and others.