China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
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 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian currencies remained broadly under pressure on Tuesday as geopolitical uncertainty surrounding the U.S.-Israel war with Iran continued to weigh on investor sentiment. The U.S. dollar index edged up 0.2% during Asian trading hours, supported by concerns that the ongoing conflict could fuel inflationary pressures across global markets.
The Chinese yuan stood out as a regional outperformer, with the USD/CNY pair dropping nearly 0.3% and breaking back below the 6.9 level. The currency gained momentum after China's January-February trade data revealed a significantly larger-than-expected trade surplus, driven by a strong surge in exports. Solid domestic spending during the Lunar New Year holiday also helped push imports higher than anticipated, though analysts remain cautious about whether that consumer momentum will be sustained beyond the festive season. The People's Bank of China further supported the yuan by setting a stronger-than-expected daily midpoint fix.
The Japanese yen saw minimal movement, with USD/JPY rising just 0.1%. Revised fourth-quarter GDP figures showed Japan's economy expanded more robustly than initially reported, buoyed by strong capital expenditure and steady household consumption. While the data signals economic resilience and gives the Bank of Japan greater flexibility to consider future rate hikes, heightened global uncertainty makes near-term policy action unlikely.
Elsewhere across Asia, the Australian dollar slipped 0.2%, and the South Korean won weakened sharply, with USD/KRW surging 1.1%. The Singapore dollar and Indian rupee both edged lower, with the rupee extending its move above the 92 level against the dollar.
Market sentiment remained fragile despite U.S. President Donald Trump indicating a resolution to the conflict could be near. Iran's Revolutionary Guard quickly dismissed any prospect of de-escalation, keeping traders cautious. Tensions escalated over the weekend following strikes on Tehran's oil infrastructure, with Iran retaliating by targeting energy assets across the region and disrupting shipping through the Strait of Hormuz.
