China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian stock markets declined on Tuesday as investor sentiment weakened בעקבות escalating geopolitical tensions in the Strait of Hormuz and anticipation of further monetary tightening in Australia. Regional trading activity remained subdued, with major markets in Japan, China, and South Korea closed, leading to lower overall volumes.
The downturn followed negative cues from Wall Street, where U.S. equities dropped after Iran launched retaliatory strikes in response to a U.S. mission aimed at reopening the Strait of Hormuz. This development raised concerns about a potential disruption to the fragile ceasefire between the two nations. However, statements from Iranian officials suggested that diplomatic negotiations are still ongoing, offering some hope of de-escalation. Meanwhile, S&P 500 Futures remained largely unchanged during Asian trading hours.
Australia’s benchmark ASX 200 index fell by 0.6% as investors braced for a widely anticipated interest rate hike by the Reserve Bank of Australia (RBA). Analysts expect the central bank to raise rates by 25 basis points, marking its third increase this year as it continues to address persistent inflation pressures. Rising oil and gas prices, partly driven by tensions involving Iran, have reinforced expectations of a more hawkish monetary policy stance. The ASX 200 has now declined in 10 of the past 11 sessions, reflecting investor caution amid tightening financial conditions. Among notable movers, Westpac Banking Corporation dropped 1.8% after reporting weaker-than-expected first-half earnings, while Regis Resources fell 4.9% following its announcement to acquire Vault Minerals.
Hong Kong’s Hang Seng Index also moved lower, declining 0.8%, primarily due to losses in technology stocks that mirrored the overnight sell-off in U.S. markets. The tech sector faced additional pressure from profit-taking after a strong rally driven by artificial intelligence optimism in recent weeks. Gains fueled by DeepSeek’s AI model launch in late April have started to fade as investor enthusiasm cools.
Elsewhere in the region, Singapore’s Straits Times Index slipped 0.3%, while India’s Nifty 50 futures traded flat, highlighting a cautious outlook across Asian financial markets.
