Asian Stocks Rally as AI Optimism Fuels Chipmaker Surge 
Oil Prices Rise as Hormuz Tensions Threaten Supply 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
China to Inject $45 Billion Into State Financial Institutions 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Canada Retaliatory Tariffs on U.S. Goods Take Effect 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
UK House Prices Fall for First Time Since 2023 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
OPEC+ Expected to Hold October Oil Output Steady 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
Uranium Prices Could Top $100 as Nuclear Demand Grows 
ECB Set for September Rate Hike as Energy Prices Fuel Inflation 
Japan, U.S. Stay Aligned on Yen as Currency Surges 
South Korea GDP Surges on Chip and AI Boom 
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Most Asian currencies gained ground on Wednesday as the US dollar retreated to a four-week low amid improving global risk appetite, fueled largely by a surprise ceasefire agreement between US President Donald Trump and Iran. The development eased fears of a prolonged Middle East conflict and sent oil prices tumbling below $100 per barrel.
The US Dollar Index shed nearly 1%, with futures contracts also trading around 0.9% lower in early Asian hours. The retreat in the greenback provided broad support across regional currencies, with several posting notable gains.
Trump announced late Tuesday that both sides had agreed to a two-week "double-sided" ceasefire, struck just before a self-imposed deadline for potential large-scale US military action. The deal, brokered through Pakistan's diplomatic efforts, hinges on Iran guaranteeing the full and immediate reopening of the Strait of Hormuz — a critical global shipping route. Analysts at MUFG noted that de-escalation in the region is particularly favorable for Asia, which has been disproportionately affected by the threat of a Strait closure.
The Chinese yuan surged to its strongest level against the dollar in three years, with the USD/CNY pair falling to 6.82. The Japanese yen and South Korean won also strengthened, while the Singapore dollar posted moderate gains.
In monetary policy news, the Reserve Bank of New Zealand held its benchmark interest rate steady at 2.25%, in line with market forecasts. The central bank cautioned that elevated oil prices could temporarily drive inflation higher even as economic momentum slows. The New Zealand dollar jumped 1.7% following the announcement. The Australian dollar climbed 1.2%.
Meanwhile, the Indian rupee edged higher ahead of the Reserve Bank of India's policy decision, where the repo rate is broadly expected to remain at 5.25%. Traders are also watching Friday's US consumer price index release for fresh signals on the Federal Reserve's monetary policy direction.
