Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
BOJ May Raise Japan Growth Forecast While Keeping Focus on Inflation Risks 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
US-Iran Strikes Escalate as Strait of Hormuz Crisis Pushes Oil Prices Higher 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian stock markets climbed on Wednesday after weaker-than-expected U.S. inflation eased concerns about additional Federal Reserve interest rate hikes, lifting investor sentiment across the region. Lower inflation, combined with strong Wall Street bank earnings, supported risk appetite, while oil prices paused after the United States abandoned a proposed shipping fee through the Strait of Hormuz.
South Korea’s KOSPI surged 6% in early trading, driven by gains in semiconductor stocks, while Japan’s Nikkei 225 added 0.4%. MSCI’s broad Asia-Pacific index outside Japan advanced 1.7%, reflecting broad regional optimism.
Investor confidence strengthened after U.S. consumer prices fell 0.4% in June, marking the first monthly decline since the COVID-19 pandemic. Annual core inflation also slowed to 2.6%, below economists’ expectations of 2.8%, reducing expectations that the Federal Reserve will raise interest rates this month. Market pricing for a July rate hike dropped to just 16%.
J.P. Morgan analysts described the inflation report as an ideal outcome for investors, noting that slowing inflation alongside healthy corporate earnings creates favorable conditions for further gains in equities.
Currency markets reacted as the U.S. dollar weakened against most major currencies. The euro remained above $1.14, while the Australian dollar hovered near the $0.70 level. Meanwhile, U.S. two-year Treasury yields fell sharply to 4.19%, reflecting growing expectations that the Fed will keep monetary policy steady.
Oil prices stabilized after a strong rally earlier in the week. Brent crude traded near $85.50 per barrel after gaining more than 12% amid heightened Middle East tensions. President Donald Trump reimposed a naval blockade on Iranian ports and warned of further military action if negotiations fail but withdrew plans to impose a 20% shipping fee on vessels passing through the Strait of Hormuz.
Investors are now awaiting key Chinese economic data, including GDP, industrial production, and retail sales, along with earnings from ASML, BNY, Johnson & Johnson, BlackRock, and United Airlines for further direction.
