Oil Prices Drop as Strait of Hormuz Shipping Recovers 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Asian currencies traded mostly flat on Wednesday after posting strong gains in the previous session, as higher-than-expected U.S. inflation data strengthened the U.S. dollar and pushed Treasury yields higher. Investors also reduced expectations for Federal Reserve interest rate cuts, increasing pressure on regional currencies.
The U.S. Dollar Index remained near a one-week high during Asian trading hours after climbing 0.4% on Tuesday. Market sentiment shifted after fresh data showed U.S. consumer prices rose 3.8% year-over-year in April, marking the fastest pace of inflation since May 2023. The reading came in above analyst forecasts, reinforcing concerns that the Federal Reserve could maintain elevated interest rates for a longer period.
Following the inflation report, traders largely ruled out the possibility of a Fed rate cut in 2026, while expectations for another rate hike increased slightly. Rising Treasury yields also supported the dollar’s strength against major Asian currencies.
The Japanese yen weakened slightly, with the USD/JPY pair rising 0.1% after gaining 0.3% in the previous session. The South Korean won also stabilized after a sharp rally, while the Indian rupee hovered near record lows against the dollar after USD/INR touched 95.7375 in the prior session.
Meanwhile, the Singapore dollar and Australian dollar traded in narrow ranges as investors remained cautious ahead of key geopolitical developments.
The Chinese yuan stayed near a three-year low against the dollar, although it continued to outperform several regional peers. Investors are closely monitoring talks between former U.S. President Donald Trump and Chinese President Xi Jinping in Beijing from May 13 to May 15. Discussions are expected to focus on trade relations, tariffs, artificial intelligence, rare earth exports, and the ongoing Iran conflict.
Global market sentiment also remained fragile due to escalating Middle East tensions. Concerns over disruptions in oil shipments through the Strait of Hormuz kept crude oil prices above $100 per barrel, adding to inflation worries worldwide and further supporting the U.S. dollar.
