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 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
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 
Most Asian currencies traded within tight ranges on Friday, while the U.S. dollar remained firm near a six-week high, supported by strong U.S. economic data and fading expectations for imminent Federal Reserve rate cuts. The U.S. Dollar Index was largely flat during Asian trading hours after climbing to its highest level since early December overnight, reflecting continued demand for the greenback. U.S. Dollar Index futures were also little changed around 03:35 GMT, signaling cautious positioning ahead of further economic cues.
Recent U.S. macroeconomic releases reinforced the dollar’s strength. Initial jobless claims unexpectedly fell to 198,000 last week, well below market forecasts of 215,000, underscoring resilience in the U.S. labor market. This data has pushed traders to reassess their outlook for Federal Reserve policy, with expectations for the first interest rate cut now shifting toward mid-year rather than the early months of 2026. Comments from several Federal Reserve officials added to this sentiment, as policymakers emphasized a willingness to keep rates steady, citing stabilizing employment conditions and persistent inflation pressures.
In Asia, the Japanese yen showed mild stability after hovering near 18-month lows. The USD/JPY pair slipped around 0.3%, supported by verbal intervention from Japanese government officials seeking to curb excessive yen weakness. Analysts noted that the Bank of Japan is increasingly mindful of the yen’s impact on inflation. However, speculation over a potential snap election under Prime Minister Sanae Takaichi has kept the currency under pressure, as markets fear looser fiscal policy could weigh further on the yen.
Elsewhere, the South Korean won weakened slightly, with the USD/KRW pair rising about 0.2% and heading for a weekly gain of over 1%, despite brief support from comments by U.S. Treasury Secretary Scott Bessent earlier in the week. The Chinese yuan remained largely steady, with both the onshore USD/CNY and offshore USD/CNH pairs showing minimal movement. The Indian rupee and Singapore dollar also traded flat, reflecting broader regional caution.
Meanwhile, the Australian dollar edged modestly higher, with AUD/USD up around 0.1%, as investors balanced global risk sentiment against domestic factors. Overall, Asian currency markets remained subdued, tracking U.S. dollar strength and evolving expectations around Federal Reserve interest rate policy.
