ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
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 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asian equity markets declined sharply on Monday as investors reacted to mounting geopolitical tensions surrounding the U.S.-Israel conflict with Iran, while hawkish signals from the Bank of Japan added further pressure on regional sentiment. The selloff was broad-based, though Japanese and technology-heavy markets bore the brunt of the losses.
Japan's Nikkei 225 and TOPIX indexes each tumbled more than 3%, making them the worst performers across the region. The steep decline followed comments from BOJ Governor Kazuo Ueda, who addressed parliament and emphasized the central bank's close monitoring of yen movements. Ueda warned that a persistently weak yen could drive up import costs and potentially trigger additional interest rate increases, reinforcing expectations of a tighter monetary policy ahead.
Asian technology stocks also came under significant pressure, mirroring losses on Wall Street driven by profit-taking and growing skepticism around artificial intelligence demand. South Korea's KOSPI shed roughly 3%, while Hong Kong's Hang Seng fell approximately 1%. Samsung Electronics and SK Hynix — two of the world's largest memory chipmakers — dropped 2.5% and 4.8%, respectively, after Google unveiled a new data compression algorithm that raised concerns about future AI-driven memory chip consumption.
Geopolitical uncertainty continued to weigh on investor confidence across the board. Although U.S. President Donald Trump stated that negotiations with Iran were progressing and that a deal could be near, markets remained cautious. The situation grew more complex over the weekend when Yemen's Houthi group, backed by Iran, launched attacks on Israel, potentially widening the regional conflict.
Rising oil prices compounded concerns, stoking fears of energy-led inflation and broader economic disruption. Other regional markets posted modest declines, with Australia's ASX 200 falling 0.8% and India's Nifty 50 dipping by a similar margin, while China's major indexes traded within a narrow range.
