Geopolitics remains centrestage after dismal May

INVESTORS are heading into the first week of June after a May to forget, with geopolitical developments remaining the main driver of market sentiment.

"Developments surrounding the US-China conflict are expected to continue dominating sentiment surrounding Asian assets for the week ahead, with markets already wary of the prospects of a full-blown, US-China trade war," FXTM market analyst Han Tan said.

US President Donald Trump ratcheted up his aggression on trade matters over the past month, increasing tariffs on US$200 billion of Chinese exports to the United States, slapping bans on Chinese telecommunications equipment maker Huawei, and threatening Mexico with tariffs over immigration matters.