South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian stock markets traded mostly flat on Wednesday as subdued year-end trading volumes and holiday-thinned liquidity limited investor activity across the region. With Christmas and New Year holidays approaching, many market participants continued to wind down positions, resulting in narrow trading ranges despite generally supportive global cues. Investors also closely assessed the latest Bank of Japan meeting minutes for signals on future interest rate hikes, adding to cautious sentiment.
Regional benchmarks struggled to gain momentum as the lack of strong conviction restricted follow-through buying. This seasonal slowdown, common across Asian, European, and U.S. markets during the final weeks of the year, kept risk appetite muted. Even positive global developments failed to spark meaningful rallies, highlighting the impact of reduced participation and defensive positioning.
Overnight, Wall Street ended higher, with the S&P 500 closing at a fresh record high. Gains were driven largely by large-cap technology stocks, while optimism was reinforced by U.S. economic data showing a stronger-than-expected 4.3% annualised expansion in the third quarter. The robust growth outlook helped support confidence in corporate earnings and sustained broader risk sentiment, although the spillover into Asian equities remained limited.
In Asia, China’s Shanghai Composite rose 0.3%, while the CSI 300 index was largely unchanged. Hong Kong’s Hang Seng Index edged up 0.2%. South Korea’s KOSPI slipped 0.2%, Singapore’s Straits Times Index traded flat, and India’s Nifty 50 gained 0.2%. Australia’s S&P/ASX 200 declined 0.4%, reflecting mixed regional performance.
Japanese stocks were also subdued, with the Nikkei 225 down 0.1% and the broader TOPIX falling 0.4%. Attention remained on the Bank of Japan’s latest meeting minutes, which revealed internal debate over the need for further interest rate increases following a recent hike. While some policymakers supported gradual tightening to keep inflation near target, others emphasized monitoring economic and wage trends. This uncertainty over future policy normalization kept Japanese equities and the yen largely range-bound, reinforcing the cautious tone across Asian markets.
