Asian Stocks Slip as Fed Holds Rates, Samsung Earnings Fail to Lift AI Sentiment 
Asian Stocks Rally as AI Optimism Lifts Markets; Yen Holds Gains Ahead of BOJ Decision 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
China PMI Falls Into Contraction as Manufacturing, Services Weaken in July 
US Jobs Report, Fed Outlook, and Big Tech Earnings Put Stock Market in Focus 
Japan Earthquake Disrupts Auto and Chip Supply Chains 
Gold Price Holds Near $4,025 Ahead of Fed Decision as Middle East Tensions Lift Oil 
China PMI Contracts in July as Weak Demand and Typhoons Weigh on Economy 
Oil Prices Head for 21% Monthly Surge as Middle East Conflict Fuels Supply Fears 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
Asian Currencies Hold Steady After Fed Decision as Dollar Finds Support 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Asian Stocks Tumble as Tech Selloff Deepens Ahead of Fed Decision, Big Tech Earnings 
South Korea Exports Surge 62.8% in July on AI Chip Demand 
Fed Holds Rates Steady as US Dollar Slides, Euro and Yen Gain 
US Stock Futures Rise as AI Optimism Lifts Nvidia, Microsoft, Amazon While Apple Slips 
South Korea’s KOSPI Soars as Samsung, SK Hynix Rebound on Microsoft-Fueled AI Rally 
The U.S. dollar ended July with its weakest monthly performance since April, as growing doubts over the Federal Reserve’s commitment to controlling inflation weighed on the currency and fueled a sharp sell-off in U.S. bonds. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, closed at 99.83, down 1.3% for the month.
Most of the dollar’s losses came this week after the Federal Reserve kept interest rates unchanged. While the decision was widely expected, investors were unsettled by three dissenting votes from Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan, all of whom favored a 25-basis-point rate hike due to persistent inflation risks.
Market participants also expressed disappointment with Fed Chair Kevin Warsh’s comments, which offered little guidance on the central bank’s next policy move. Rising Treasury yields throughout July reflected increasing investor concerns that the Fed may not be acting aggressively enough to contain inflation, particularly after oil prices rebounded amid escalating Middle East tensions.
Interactive Brokers senior economist José Torres said bond markets are signaling that the Fed could face mounting pressure to raise rates at its September meeting if inflation remains elevated. He noted that the widening gap between the Fed’s cautious approach and market expectations has intensified uncertainty across fixed-income markets.
Meanwhile, the Japanese yen strengthened for a second consecutive day, with investors pointing to suspected intervention by Japanese authorities after the currency recently touched a four-decade low against the dollar. The USD/JPY pair recorded its worst weekly performance since August 2024, overshadowing the Bank of Japan’s widely expected decision to leave its benchmark interest rate unchanged at 1%.
The BoJ maintained its policy in an 8-1 vote, with board member Hajime Takata again calling for a 25-basis-point rate increase. The central bank also lowered its core inflation forecast while slightly raising its economic growth outlook, citing government support measures.
Elsewhere, the euro rose 1% in July to $1.1537 after stronger eurozone inflation and GDP data boosted expectations of a European Central Bank rate hike in September. The British pound also gained 1.7% during the month, finishing at $1.3484.
