Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian currencies weakened sharply on Monday as escalating tensions involving Iran boosted oil prices, pushed global bond yields higher, and strengthened the U.S. dollar. Investors grew increasingly concerned that rising energy costs could reignite inflation and force central banks to maintain elevated interest rates for longer.
The Chinese yuan remained under pressure after disappointing economic data highlighted ongoing weakness in China’s recovery. The USD/CNY pair climbed 0.1%, hovering near its weakest level in more than two years. China’s April industrial production missed market expectations, while retail sales growth slowed to its weakest pace in over three years. Fixed asset investment also unexpectedly contracted, signaling weaker business and government spending activity.
Analysts said sluggish domestic demand continues to weigh heavily on the Chinese economy, while geopolitical risks linked to the Iran conflict could create additional challenges for trade and manufacturing across Asia. Although China and the United States recently agreed to reduce certain tariffs and trade barriers following high-level talks, investors remained cautious due to the lack of detailed policy guidance.
Broader Asian foreign exchange markets also struggled as higher oil prices and rising Treasury yields boosted demand for the U.S. dollar. The dollar index edged higher during Asian trading, reflecting expectations that global interest rates may stay elevated.
The Japanese yen weakened slightly, with USD/JPY rising 0.1% even as Japan’s 10-year government bond yields hit a 29-year high. Markets are increasingly betting that the Bank of Japan could raise interest rates in June, though the move may offer limited support to the yen.
Elsewhere, the Australian dollar fell 0.3%, while the South Korean won recorded one of the region’s biggest losses. The Indian rupee stayed near record lows as surging crude oil prices continued to pressure the import-dependent economy.
