Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian stock markets moved mostly sideways on Monday as thin year-end trading volumes and reduced investor participation kept activity muted across the region. With many global investors already having completed year-end positioning, markets lacked strong catalysts, resulting in tight trading ranges despite generally positive sentiment around global monetary policy easing.
Investor confidence was supported by expectations that the U.S. Federal Reserve could continue cutting interest rates into 2026 following its recent policy move. Lower interest rate forecasts have helped underpin risk appetite globally, particularly benefiting equities in emerging markets and interest rate–sensitive sectors. However, caution prevailed in Asia as traders awaited clearer signals on global growth and policy direction heading into the new year.
U.S. markets offered limited direction. Wall Street indices closed marginally lower on Friday, though optimism around a potential “Santa Claus rally” remained intact. Meanwhile, U.S. stock index futures traded largely flat during Asian hours, reinforcing the subdued regional mood.
South Korea stood out as a notable outperformer. The benchmark KOSPI index surged 1.7%, driven by strong gains in heavyweight technology stocks. Chipmaker SK Hynix jumped nearly 6% after being removed from an investment warning list, boosting confidence in the semiconductor sector. Samsung Electronics also advanced around 1.5%, adding further support to the index.
Elsewhere in Asia, movements were modest. Japan’s Nikkei 225 slipped 0.3%, while the broader TOPIX edged up 0.1%. China’s Shanghai Composite gained 0.3%, reflecting cautious optimism, while Hong Kong’s Hang Seng index rose 0.4%. Singapore’s Straits Times Index remained largely flat, India’s Nifty 50 was little changed, and Australia’s S&P/ASX 200 declined 0.3%.
As Asia approaches 2026, investors are increasingly focused on how U.S. interest rate cuts, global economic growth trends, and regional policy developments will shape market performance. While near-term trading remains quiet, expectations of easier monetary conditions continue to provide a supportive backdrop for Asian equities.
