Market Uncertainty Looms Amid Debt Ceiling Talks and Retail Earnings

Asia-Pacific markets traded mixed as China left its loan rates unchanged and talks on the U.S. debt ceiling are set to resume. South Korea's exports fell 16.1% YoY in May, while Japan's core machinery orders fell 3.9% MoM in March. Meanwhile, Federal Reserve Chair Jerome Powell said interest rates may not have to rise as much as previously thought due to stresses seen in the banking sector, and New York Federal Reserve President John Williams said the "era of very low" interest rates remains intact.