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South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
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Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
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World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
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Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Asian currencies gained traction on Friday, buoyed by a weakening U.S. dollar and rising expectations of a Bank of Japan (BOJ) rate hike following strong inflation data. The U.S. Dollar Index dropped 0.3% during Asian trading hours and is on track for a 1% weekly decline, pressured by growing concerns over the U.S. fiscal deficit. Dollar Index Futures mirrored this trend, falling 0.3%.
The Japanese yen led regional gains, with USD/JPY slipping 0.4%, setting the yen up for a 1.5% weekly gain. Japan's core consumer price index rose 3.5% in April, surpassing expectations and marking the fastest increase in over two years. A separate measure that excludes both fresh food and energy also climbed to 3.0%. These numbers, coupled with recent wage hikes, have strengthened market sentiment for a potential 25 basis point BOJ rate hike by July.
Meanwhile, the dollar faced added pressure after the U.S. House passed President Trump’s "One Big Beautiful Bill" on Thursday, introducing massive tax cuts and increased spending on defense and border security. The Congressional Budget Office estimates the bill could inflate the U.S. national debt by $3.8 trillion over the next decade. Moody’s recently downgraded the U.S. credit rating to Aa1, citing mounting debt concerns.
This backdrop fueled a broader advance among Asian currencies. The South Korean won rose 0.5%, the Philippine peso gained 0.6%, and the Chinese yuan in both offshore and onshore markets edged up 0.1%. The Australian dollar climbed 0.3%, while the Singapore dollar and Indian rupee appreciated 0.2% and 0.1%, respectively.
