China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Asian currencies traded in narrow ranges on Tuesday, while the U.S. dollar strengthened as upcoming trade talks between Washington and Beijing helped ease fears of a renewed trade war. The Japanese yen weakened further, extending losses from Monday amid expectations that fiscal dove Sanae Takaichi will become Japan’s next prime minister. A parliamentary vote later today is expected to confirm her leadership, solidifying forecasts of increased fiscal stimulus and looser spending policies.
Asian markets initially declined on renewed U.S.-China tensions, but optimism returned following conciliatory comments from U.S. officials, boosting regional currencies. Dovish remarks from Federal Reserve policymakers also fueled speculation of an October interest rate cut. However, lingering uncertainty about the U.S. economy, compounded by a government shutdown delaying key economic data, left investors cautious ahead of the Fed’s upcoming meeting. The dollar index and its futures both edged up 0.1% in Asian trade as investors sought safety.
The Chinese yuan (USD/CNY) traded flat but remained firm following strong midpoint fixes by the People’s Bank of China. Markets focused on potential progress in trade dialogue after U.S. President Donald Trump signaled optimism, saying tariffs on China were “not sustainable” and expressing hope for a fair deal with President Xi Jinping. Still, U.S. Trade Representative Jamieson Greer’s remarks on China’s “economic coercion” over rare earth exports tempered market enthusiasm.
Elsewhere, the Australian dollar (AUD/USD) slipped 0.1% despite Canberra signing a major critical minerals agreement with Washington. The South Korean won (USD/KRW) rose 0.2%, the Singapore dollar (USD/SGD) gained 0.1%, and the Taiwan dollar (USD/TWD) strengthened 0.2%. Indian markets remained closed for a public holiday.
