Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian markets showed resilience on Thursday as AI-related stocks climbed following strong earnings from major U.S. tech firms, even as rising oil prices and tightening monetary policy pressured global bonds and currencies. Investor sentiment remained mixed, balancing optimism in artificial intelligence growth with mounting macroeconomic risks tied to inflation and interest rates.
Tech giants led the momentum, with Alphabet exceeding expectations and lifting Nasdaq futures by around 1%. Microsoft and Amazon also delivered solid results, reinforcing confidence in continued AI-driven expansion. However, Meta Platforms weighed on sentiment after announcing a sharp increase in capital expenditures to fund artificial intelligence infrastructure, sending its shares lower.
In Asia, equity performance was uneven. Japan’s Nikkei index slipped slightly but remained on track for strong monthly gains, while South Korea’s KOSPI reached a record high driven by Samsung Electronics’ surge in operating profit amid booming AI demand. Meanwhile, Chinese blue chips edged higher and Hong Kong stocks dipped modestly.
Global financial markets faced pressure from a sharp spike in oil prices, with Brent crude jumping to a four-year high above $122 per barrel amid geopolitical concerns surrounding the Strait of Hormuz. The surge fueled inflation fears and triggered a sell-off in government bonds worldwide. U.S. Treasury yields climbed to a one-month high, while Japanese and Australian bond yields also surged to multi-year peaks.
Central banks added to market volatility as expectations grew for more aggressive policy tightening. Investors increasingly believe the Federal Reserve may hold rates steady longer, with a potential hike next year now being priced in. The U.S. dollar strengthened alongside rising yields, pushing the yen past 160 per dollar and raising concerns about possible intervention.
Despite economic uncertainties, strong corporate earnings and continued investment in AI technology are helping support equity markets. However, rising borrowing costs, elevated oil prices, and widening credit spreads continue to pose risks to global growth and investor confidence.
