Gold Prices Fall 1% Ahead of Fed Decision as Markets Watch Warsh, Iran Talks 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Japan PM Sanae Takaichi Plans Temporary Food Tax Cut to Ease Inflation Pressure 
European Stocks Edge Higher as Strong Earnings Offset Inflation and Fed Rate Concerns 
Oil Prices Jump as Trump Vows Response to Iran Attack, Supply Risks Return 
US Stocks Slide as Fed Holds Rates, AI Chip Selloff Deepens and Oil Prices Surge 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
China PMI Falls Into Contraction as Manufacturing, Services Weaken in July 
Asian Currencies Hold Steady After Fed Decision as Dollar Finds Support 
Hong Kong Home Prices Extend Winning Streak With 13th Straight Monthly Gain in June 
Oil Prices Head for 21% Monthly Surge as Middle East Conflict Fuels Supply Fears 
Fed Holds Rates Steady as US Dollar Slides, Euro and Yen Gain 
Oil Prices Ease After Sharp Rally as Trump Warns of More Action Against Iran 
US Stock Futures Rise as Amazon Earnings Boost AI Optimism Despite Apple Selloff 
South Korea’s KOSPI Soars as Samsung, SK Hynix Rebound on Microsoft-Fueled AI Rally 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
Asian stock markets surged on Friday, tracking a strong rebound on Wall Street as renewed confidence in artificial intelligence (AI) spending sparked a broad recovery in technology shares. South Korea’s Kospi led the gains with a record comeback after suffering heavy losses earlier in the week, raising hopes that the recent AI-driven market selloff may be nearing its end.
The rally followed better-than-expected earnings from Microsoft and Amazon, whose strong results and upbeat outlook reassured investors that demand for AI infrastructure remains robust despite concerns over rising capital expenditures. Japan’s Nikkei climbed 4.5%, while MSCI’s Asia-Pacific index excluding Japan advanced 4.6%. Nasdaq futures gained 0.6%, and S&P 500 futures rose 0.3%, pointing to continued strength in global equities.
Analysts said investor sentiment has improved after markets may have overreacted to worries surrounding AI-related spending. China also joined the recovery, with the CSI AI Index jumping more than 7% and the Hang Seng Tech Index posting modest gains.
Despite Friday’s sharp rebound, South Korea’s Kospi remained on course for its worst monthly performance since 1997, with losses exceeding 25% in July. The extreme volatility prompted South Korean regulators to tighten oversight of leveraged investment products that amplified retail investor losses.
Currency markets remained focused on the Japanese yen, which traded around 160.55 per dollar after staging a dramatic rebound from a 40-year low. The move followed suspected intervention by Japanese authorities, while reports suggested South Korea also sold dollars to support its currency. Traders were also watching the Bank of Japan’s policy decision, with expectations the central bank would keep interest rates unchanged.
The stronger yen weighed on the U.S. dollar, allowing the euro to hold near a one-month high at $1.1514, while the British pound remained firm around $1.3457.
Meanwhile, oil prices slipped despite continued geopolitical tensions in the Middle East. Brent crude fell to about $88 per barrel and U.S. crude dropped below $82, even after a drone strike on gas vessels at Egypt’s Damietta port raised concerns over potential disruptions to shipping near the Suez Canal. Gold also edged lower, with spot prices easing to around $4,083 an ounce as investors shifted toward risk assets.
