US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Asian Markets Gain as China’s Fiscal Stimulus Talks Begin
Most Asian stocks rose on Monday, driven by investor anticipation of further fiscal stimulus discussions from China’s National People’s Congress (NPC) Standing Committee meeting. However, market gains were tempered by risk aversion ahead of the U.S. elections and the Federal Reserve meeting this week.
Low Trading Volumes and Market Sentiment
Trading volumes were light due to a public holiday in Japan, with the Nikkei 225 futures slipping 0.2%. Asian markets were buoyed by Friday’s U.S. nonfarm payroll report, which came in softer than expected, fueling speculation that a cooling U.S. job market might prompt further Federal Reserve rate cuts.
Chinese Stocks Upbeat on Fiscal Stimulus Expectations
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes advanced 0.5% and 0.3%, respectively, while Hong Kong’s Hang Seng rose 0.7%. Investors are closely monitoring the NPC meeting, where the committee is anticipated to propose substantial fiscal spending, including potential debt issuance of up to $1.4 trillion. Such measures aim to address deflationary pressures and revitalize China’s struggling property sector.
Australia Stocks Rise, Eyes on Reserve Bank
Australia’s ASX 200 edged up 0.3%, as investors await Tuesday's Reserve Bank of Australia (RBA) meeting. While the RBA is expected to maintain current rates, it may hint at hawkish policies due to persistent inflation. According to ANZ analysts, the bank does not anticipate beginning rate cuts until 2025.
Mixed Performance Across Asia
South Korea’s KOSPI led gains, rising 1.4% on strong chip stocks. In India, Nifty 50 futures indicated a flat start, with market focus shifting to upcoming earnings reports.
