Deutsche Bank Sees Global Capital Shifts Reshaping Long-Term U.S. Dollar Outlook 
Japan Eyes Bigger GPIF Investment in Domestic Assets as BOJ Independence Concerns Grow 
Fed Reaffirms 2% Inflation Goal, Vows Forceful Action to Anchor Price Expectations 
Asian Stocks Rise as AI Chip Rally Offsets Middle East Tensions 
Oil Prices Slip but Stay on Track for Weekly Gains as U.S.-Iran Conflict Persists 
Japan Producer Inflation Hits 7.1% in June, Fueling BOJ Rate Hike Expectations 
Gold Prices Set for Weekly Loss as Iran Tensions and Fed Rate Outlook Weigh 
Oil Prices Jump as U.S.-Iran Conflict and Strait of Hormuz Tensions Shake Global Markets 
Wall Street Rises as SK Hynix’s Record Nasdaq Debut Steals Spotlight Ahead of U.S. CPI Data 
US-Iran Strikes Escalate as Strait of Hormuz Crisis Pushes Oil Prices Higher 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gold Prices Slip as U.S.-Iran Conflict, Fed Rate Hike Bets Pressure Precious Metals 
EU Weighs New Trade Restrictions on Israeli West Bank Settlements 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
Dollar Ends Week Higher as Yen Jumps on Japan Pension Fund Investment Plans 
Asian stock markets traded mixed on Friday as regional holidays kept volumes muted, with Japanese equities rallying near record highs while Hong Kong markets slipped on sharp electric vehicle losses. Investor sentiment was shaped by developments in technology, central bank commentary, and political shifts in Japan.
Japan’s Nikkei 225 jumped 1.6%, approaching all-time highs, while the TOPIX gained 1.3%. The surge was fueled by strong gains in technology shares, led by Hitachi Ltd., which soared 9.5% after unveiling a partnership with OpenAI to collaborate on AI-powered energy and storage solutions. The announcement sparked optimism over accelerated artificial intelligence development in Japan, boosting related stocks such as Renesas Electronics (+8%), Advantest (+3.4%), Tokyo Electron (+2.3%), and SoftBank Group (+3.6%).
Further support for Japanese markets came from Bank of Japan Governor Kazuo Ueda, who flagged economic uncertainties tied to U.S. tariffs and overseas conditions. While Ueda reiterated the potential for future rate hikes if inflation strengthens, his cautious tone suggested the BOJ may not rush tightening. Investors are also watching the upcoming Liberal Democratic Party leadership vote, which will determine the next Prime Minister following Shigeru Ishiba’s resignation. Candidates Sanae Takaichi, Shinjiro Koizumi, and Yoshimasa Hayashi are viewed as leading contenders, with markets anticipating a shift toward less restrictive fiscal policies.
In contrast, Hong Kong’s Hang Seng index fell 0.7% as electric vehicle makers slumped in tandem with Tesla’s 5% overnight drop. BYD slid 4.7%, Li Auto lost 4.2%, and Geely shed 2.4%. Despite Tesla reporting record Q3 deliveries, analysts cited concerns over expiring U.S. EV subsidies and fierce competition in China. Broader Hong Kong tech shares also retreated after earlier gains, though the index still held a 3.7% weekly rise.
Elsewhere, Singapore’s Straits Times rose 0.2%, Australia’s ASX 200 gained 0.4%, while India’s Nifty 50 slipped 0.2% under pressure from U.S. trade tariffs. With China and South Korea closed for holidays, regional trading remained subdued. Meanwhile, Wall Street’s S&P 500 hit another record high, and futures in Asian trade edged up 0.1%, though the U.S. government shutdown cast uncertainty over the release of key nonfarm payrolls data.
