Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
Asian currencies remained largely flat on Monday, even as the U.S. dollar weakened following a credit rating downgrade by Moody’s. The U.S. Dollar Index dropped 0.3% after the agency cut the government’s credit rating by one notch, citing the nation’s ballooning $36 trillion debt.
The Chinese yuan saw little movement, despite upbeat April industrial production data showing stronger-than-expected factory output. However, disappointing retail sales data highlighted weak domestic demand, keeping pressure on the yuan. Offshore USD/CNH and onshore USD/CNY both stayed muted.
Analysts from ING noted that U.S. tariffs will significantly impact industries with easily available alternatives, but much of China’s manufacturing doesn’t fall into that category. They also suggested that a temporary ceasefire in tariffs could spur economic activity in the coming months.
The Japanese yen outperformed regional peers, with the USD/JPY pair falling 0.3%, driven by expectations of further rate hikes from the Bank of Japan. The central bank’s deputy governor indicated that more hikes could follow if Japan's economy recovers from the impact of rising U.S. tariffs. However, recent data showed Japan's GDP shrank 0.7% in Q1 2025, its first decline in a year, which may limit the BOJ’s tightening capacity.
Other Asian currencies saw limited movement. The South Korean won edged higher, with the USD/KRW pair down 0.1%, while the Singapore dollar and Australian dollar saw slight gains. The Indian rupee remained unchanged.
Despite the weaker dollar, ongoing uncertainty around U.S. trade policy—especially President Trump’s threat to reimpose tariffs on countries not negotiating in "good faith"—kept investor sentiment cautious and capped gains across Asia’s forex markets.
