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 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian stock markets climbed to six-week highs on Monday, supported by optimism over potential U.S. Federal Reserve interest rate cuts next year, while the U.S. dollar hovered near its lowest level in almost three months. Expectations of easier monetary policy have also driven a strong rally in precious metals, although volatility remains elevated after sharp price swings.
MSCI’s broad Asia-Pacific equity index advanced around 0.3%, reaching its highest level since early October and capping a powerful year in which the index has gained more than 25%. Technology shares have been the primary driver, as enthusiasm around artificial intelligence continues to attract investor inflows. South Korea’s Kospi surged 1.5% to a near two-month high and is on track for an exceptional annual gain of about 74%, its strongest performance since 1999. Taiwan stocks edged to a fresh record high, while Japan’s Nikkei slipped modestly.
In commodities, precious metals pulled back after dramatic gains. Silver briefly surged above the $80-per-ounce level for the first time before retreating sharply amid volatile trading. Platinum and palladium also fell after touching record highs, while gold eased nearly 1%. Despite near-term technical risks, analysts say the broader outlook for gold and other precious metals remains constructive, supported by expectations of lower interest rates, geopolitical uncertainty, fiscal concerns, and ongoing diversification demand among investors.
Market attention this week is focused on the release of minutes from the Federal Reserve’s latest policy meeting, as investors look for clues on the timing and scale of future rate cuts. Although the Fed recently cut rates and projected only one more reduction next year, traders continue to price in additional easing, especially if upcoming U.S. labor market data signals economic weakness.
In currency markets, the Japanese yen found modest support after slightly hawkish signals from the Bank of Japan, though it remains near recent lows. Meanwhile, the dollar index slipped further, on course for its steepest annual decline since 2017, reinforcing momentum across global equities and commodities as the year draws to a close.
