Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
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 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
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 
Asian stock markets surged on Monday after investors welcomed news of a preliminary peace agreement between the United States and Iran, easing concerns over geopolitical tensions in the Middle East. The positive sentiment spread across regional markets, while investors also looked ahead to a busy week of major central bank decisions, including meetings by the Bank of Japan (BOJ), Reserve Bank of Australia (RBA), and the U.S. Federal Reserve.
South Korea’s KOSPI led gains across Asia, soaring 5.6% and moving closer to record-high levels. Chinese equities also advanced, with the CSI 300 rising 1.3% and the Shanghai Composite gaining 0.9%. Hong Kong’s Hang Seng Index added 0.4%, while Singapore’s Straits Times Index climbed 1.2%. India’s Nifty 50 futures also pointed higher, advancing 1.7%.
Investor confidence improved after Washington and Tehran announced a memorandum of understanding aimed at ending hostilities and reopening the strategically important Strait of Hormuz. The agreement is expected to be formally signed later this week, followed by negotiations regarding Iran’s nuclear program. While uncertainty remains over future developments, the announcement significantly reduced immediate fears of supply disruptions.
The prospect of reduced geopolitical risk pushed oil prices lower, benefiting major Asian economies such as Japan, South Korea, and India, which rely heavily on imported energy supplies passing through the Strait of Hormuz.
Japanese equities posted some of the strongest gains in the region. The Nikkei 225 jumped 5.4%, while the TOPIX gained 3.6%, with both benchmarks reaching record highs. Technology and industrial stocks were among the biggest contributors to the rally.
Market attention is now turning to the Bank of Japan’s policy meeting, where analysts widely expect a 25-basis-point interest rate increase. Investors will closely monitor the BOJ’s economic outlook and future policy guidance, particularly as inflationary pressures remain elevated.
Meanwhile, Australia’s ASX 200 rose 1.3% ahead of the Reserve Bank of Australia’s policy announcement, where interest rates are expected to remain unchanged. Global investors are also awaiting the Federal Reserve meeting later this week for further clues on the direction of monetary policy and its impact on global financial markets.
