Thailand Inflation Remains Negative for 10th Straight Month in January 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asia’s stock markets dropped sharply Wednesday, following Wall Street’s sell-off, as Iran’s ballistic missile strike on Israel stoked fears of a broader regional conflict. Crude oil prices surged amid concerns of supply disruptions, prompting investors to flock to safe-haven assets like bonds and gold.
U.S. Treasury yields declined during Asian trading hours, with gold hovering near its all-time high. The U.S. dollar strengthened to its highest point in three weeks against the euro, bolstered by a resilient American job market that may reduce the likelihood of a Federal Reserve interest rate cut in November. Conversely, declining inflation trends in the eurozone indicate a possible easing from the European Central Bank later this month.
Market Reaction Across Asia
Japan’s Nikkei fell 1.5%, while South Korea’s KOSPI shed 1.3%, and Australia’s benchmark index slipped 0.3%. The MSCI’s broad Asia-Pacific index dipped 0.5%. Hong Kong’s Hang Seng remained closed after a holiday, and mainland Chinese markets stayed shut for the week-long Golden Week holiday. Trading in Taiwan was suspended due to a typhoon.
U.S. S&P 500 futures dropped 0.16%, following a 0.9% loss in the previous session.
“Geopolitics often outweighs economic indicators, corporate earnings, or central bank policies when it comes to market volatility,” said Chris Weston, head of research at Pepperstone. “While markets often stabilize, these geopolitical risks are significant, and any shift in rhetoric from Israel or Iran could notably affect sentiment.”
Iran-Israel Tensions and Oil Price Surge
Iran stated its missile attacks were complete unless further provoked, while Israel and the U.S. promised retaliation. Brent crude rose over 1% to $74.33 per barrel, adding to Tuesday’s 2.5% jump. U.S. WTI futures climbed 1.3% to $70.73 per barrel after a 2.4% rally. Gold dipped 0.16% to $2,658.63 per ounce, following a 1% surge in the previous session that nearly reached last month's record of $2,685.42.
U.S. Dollar and Global Economic Indicators
Benchmark 10-year Treasury yields edged down 1.5 basis points to 3.7278%. The dollar index held steady at 101.21, its highest level since mid-September. Euro area data showed inflation dropping below the ECB’s 2% target, while U.S. figures highlighted economic resilience. Private payroll data is due later Wednesday, ahead of key non-farm payroll numbers expected on Friday.
