Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
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 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian stock markets mostly moved higher on Wednesday, led by gains in Japan and Singapore, as investors awaited the U.S. Federal Reserve’s latest policy decision. Strong performance in technology and semiconductor stocks helped support regional markets, although caution ahead of the Fed meeting limited broader gains.
Japan’s Nikkei 225 index climbed 0.6%, remaining close to its recent record high above 70,000 points, while the broader TOPIX index gained 0.75%. Technology, semiconductor, and industrial shares led the rally amid continued optimism surrounding artificial intelligence (AI) demand. Recent trade data showed that exports of AI-related electronics and semiconductor products contributed to robust export growth in May, helping Japan record a smaller-than-expected trade deficit.
Despite the positive market sentiment, SoftBank Group shares fell as much as 5% after reports suggested that OpenAI, one of the company’s major investments, continues to face significant operating costs and ongoing losses related to its advanced AI models.
Japanese equities largely shrugged off the Bank of Japan’s recent 25-basis-point interest rate increase. The central bank also indicated that further rate hikes remain possible as it addresses inflationary pressures driven by energy costs.
Elsewhere in Asia, Singapore’s Straits Times Index surged more than 1% to a new record high. The rally followed stronger-than-expected growth in non-oil domestic exports during May, supported by rising global demand for AI-related electronic products.
Australia’s ASX 200 advanced 0.5% after the Reserve Bank of Australia left interest rates unchanged, a move widely anticipated by markets. In China, the CSI 300 index edged up 0.3%, while the Shanghai Composite slipped 0.1%. Hong Kong’s Hang Seng Index declined 0.75% amid concerns over weaker Chinese economic data released earlier in the week.
South Korea’s KOSPI traded mostly flat after recent volatility in semiconductor stocks. Meanwhile, futures linked to India’s Nifty 50 rose 0.6%, signaling a positive market opening.
Investors remain focused on the Federal Reserve’s policy announcement. While rates are expected to remain unchanged, market participants are closely monitoring economic projections and guidance on future interest rate moves. Attention is also turning to a planned memorandum of understanding between the United States and Iran, which could help ease geopolitical tensions and reopen the strategically important Strait of Hormuz.
