Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Asian currencies saw modest gains on Monday as the US dollar retreated ahead of key trade talks between the U.S. and China in London. The US Dollar Index dipped 0.2% during Asian trading hours, reversing some of Friday’s gains driven by strong U.S. jobs data. However, US Dollar Index Futures remained 0.2% higher, reflecting investor caution.
The anticipated meeting between U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and China’s Vice Premier He Lifeng aims to build on last month’s tentative Geneva truce. Talks are expected to address tariff rollbacks, tech export restrictions, and trade rule frameworks, raising hopes for easing global trade tensions.
Despite cautious optimism, regional markets remained restrained ahead of the U.S. CPI inflation report later this week, a key factor in shaping future Federal Reserve policy.
Among major currencies, the Singapore dollar slipped 0.2% against the USD, while the Indian rupee and South Korean won also weakened 0.2%. The Australian dollar gained 0.3% against the greenback. The Japanese yen strengthened, with the USD/JPY pair falling 0.3% after data showed Japan’s Q1 economic contraction was less severe than first reported.
China’s yuan traded flat, with both onshore (USD/CNY) and offshore (USD/CNH) pairs remaining steady. Soft Chinese inflation data and underwhelming export figures weighed on sentiment. The CPI declined for a fourth straight month in May, while producer prices saw their sharpest drop in nearly two years. Although exports missed forecasts, a steeper drop in imports pushed China’s trade surplus above expectations.
Overall, Asian forex markets remain on alert, balancing hopes for trade de-escalation with broader macroeconomic pressures and upcoming U.S. data releases.
