Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian currencies traded mostly flat on Wednesday as investors remained risk-averse amid the ongoing Israel-Iran war and uncertainty ahead of the U.S. Federal Reserve’s policy decision. The dollar edged slightly lower, pressured by weak U.S. economic data, while traders anticipated dovish signals from the Fed.
The South Korean won and Taiwan dollar were notable outperformers. The USD/KRW dropped 0.6%, nearing an eight-month low, while the USD/TWD fell 0.4%. The Chinese yuan (USD/CNY) and Singapore dollar (USD/SGD) held steady, while the Australian dollar (AUD/USD) rose 0.2%. India’s rupee (USD/INR) also remained flat.
Market sentiment was also clouded by concerns over U.S. trade policy, with a July deadline approaching for President Donald Trump’s planned tariffs. Japan, in particular, faced headwinds. Prime Minister Shigeru Ishiba said no trade deal was reached with the U.S. during the G7 summit, and Japan’s May trade data showed exports shrinking for the first time in eight months. Analysts now expect Japanese exports to weaken further due to tariff pressures and slowing global demand. A sharper decline in imports also raised concerns about soft domestic consumption.
Meanwhile, the yen (USD/JPY) slipped 0.1%, showing limited reaction to the Bank of Japan's decision to hold interest rates steady and signal slower bond tapering into 2026 — a dovish stance.
The U.S. dollar index fell 0.1% in Asia after disappointing U.S. retail sales and industrial production data raised fears of economic slowdown. Markets widely expect the Fed to keep rates unchanged at 0.5% but are closely watching Fed Chair Jerome Powell’s projections for rate cuts. Powell has hinted at a slower pace of easing in 2025, following cumulative rate cuts of 1% through 2024.
