South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Asian currencies posted modest gains on Thursday, lifted by a weaker U.S. dollar after disappointing ADP payroll data heightened expectations of further interest rate cuts by the Federal Reserve. The greenback slipped as the soft labor report signaled deeper cracks in the U.S. job market, with attention now turning to the upcoming nonfarm payrolls data for clearer direction.
The Japanese yen weakened slightly, with USDJPY up 0.1%, following underwhelming wage growth figures that cast doubt on consumer spending strength and Japan’s economic outlook for 2025. Meanwhile, South Korea’s won firmed, with USDKRW down 0.1%, after revised GDP data showed a smaller-than-expected Q1 contraction. Political sentiment also improved after a liberal party victory in the recent presidential election.
The Australian dollar slipped 0.1% against the greenback after April trade data revealed weaker-than-expected performance in key commodity exports. The Singapore dollar traded flat, with USDSGD largely unchanged.
In India, the rupee edged lower ahead of the Reserve Bank of India’s widely anticipated interest rate decision. The RBI is expected to cut rates by 25 basis points to 3.75%, its third cut since February, as the central bank looks to support economic growth amid easing inflation. However, analysts remain cautious, projecting the rupee to underperform other Asian currencies in 2025 due to persistent risk aversion.
Markets remain cautious amid global uncertainty, especially surrounding U.S. trade policy under President Trump. His latest move to double tariffs on steel and aluminum imports to 50% and a missed deadline for trade deal proposals continue to fuel investor unease. Traders are watching closely for developments in a potential Trump-Xi call, which could shift market sentiment.
