BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
Asian stock markets traded mixed on Friday as regional holidays kept volumes muted, with Japanese equities rallying near record highs while Hong Kong markets slipped on sharp electric vehicle losses. Investor sentiment was shaped by developments in technology, central bank commentary, and political shifts in Japan.
Japan’s Nikkei 225 jumped 1.6%, approaching all-time highs, while the TOPIX gained 1.3%. The surge was fueled by strong gains in technology shares, led by Hitachi Ltd., which soared 9.5% after unveiling a partnership with OpenAI to collaborate on AI-powered energy and storage solutions. The announcement sparked optimism over accelerated artificial intelligence development in Japan, boosting related stocks such as Renesas Electronics (+8%), Advantest (+3.4%), Tokyo Electron (+2.3%), and SoftBank Group (+3.6%).
Further support for Japanese markets came from Bank of Japan Governor Kazuo Ueda, who flagged economic uncertainties tied to U.S. tariffs and overseas conditions. While Ueda reiterated the potential for future rate hikes if inflation strengthens, his cautious tone suggested the BOJ may not rush tightening. Investors are also watching the upcoming Liberal Democratic Party leadership vote, which will determine the next Prime Minister following Shigeru Ishiba’s resignation. Candidates Sanae Takaichi, Shinjiro Koizumi, and Yoshimasa Hayashi are viewed as leading contenders, with markets anticipating a shift toward less restrictive fiscal policies.
In contrast, Hong Kong’s Hang Seng index fell 0.7% as electric vehicle makers slumped in tandem with Tesla’s 5% overnight drop. BYD slid 4.7%, Li Auto lost 4.2%, and Geely shed 2.4%. Despite Tesla reporting record Q3 deliveries, analysts cited concerns over expiring U.S. EV subsidies and fierce competition in China. Broader Hong Kong tech shares also retreated after earlier gains, though the index still held a 3.7% weekly rise.
Elsewhere, Singapore’s Straits Times rose 0.2%, Australia’s ASX 200 gained 0.4%, while India’s Nifty 50 slipped 0.2% under pressure from U.S. trade tariffs. With China and South Korea closed for holidays, regional trading remained subdued. Meanwhile, Wall Street’s S&P 500 hit another record high, and futures in Asian trade edged up 0.1%, though the U.S. government shutdown cast uncertainty over the release of key nonfarm payrolls data.
