Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
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 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Asian stock markets declined on Thursday as renewed U.S. military strikes on Iran weakened investor confidence and raised concerns over escalating geopolitical tensions in the Middle East. The latest attacks reduced hopes for a near-term peace agreement, while traders also remained cautious ahead of the release of key U.S. inflation data later in the day.
Despite Wall Street ending at record highs overnight on optimism surrounding easing tensions and lower oil prices, sentiment across Asian markets turned negative after reports confirmed fresh U.S. strikes on Iran on Wednesday. The attacks marked the second round of military action this week and came shortly after U.S. President Donald Trump rejected reports suggesting Iran and Oman would jointly oversee shipping operations through the Strait of Hormuz under a possible peace arrangement.
Oil prices rebounded sharply following the strikes, reversing part of the previous session’s losses. Brent crude climbed close to $97 per barrel, while U.S. West Texas Intermediate crude rose above $90 per barrel. Rising energy prices increased concerns that inflationary pressures could persist globally.
Japan’s Nikkei 225 index slipped 0.1% after reaching record highs in the previous session, while the broader TOPIX index edged 0.2% lower. South Korea’s KOSPI dropped 1.1% as semiconductor and AI-related stocks faced profit-taking after recent gains. Hong Kong’s Hang Seng Index fell nearly 2%, pressured by weakness in major technology shares.
China’s Shanghai Composite lost 0.4%, and the CSI 300 index declined 1.1%. Australia’s S&P/ASX 200 dropped 1.1%, while Singapore’s Straits Times Index fell 0.7%. India’s Nifty 50 futures also traded lower.
Investors are now closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Markets fear that continued geopolitical instability and rising oil prices could complicate the Fed’s monetary policy outlook and potentially increase the chances of another interest rate hike later this year.
