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 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
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 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
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 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian stock markets showed mixed but generally positive performance on Wednesday, led by strong gains in Japanese stocks and renewed optimism around China’s economy and technology sector. Japan’s equity markets surged to fresh record highs amid speculation of a snap election and expectations of increased fiscal stimulus from Tokyo, while Chinese stocks advanced on robust trade data and continued momentum in technology shares.
Japan’s Nikkei 225 climbed 1.6% to a record 54,442 points, while the TOPIX index rose 0.8% to a new peak of 3,630.76. Investor sentiment was buoyed by reports suggesting Prime Minister Sanae Takaichi may dissolve the lower house of parliament to call a snap election as early as February. Markets interpreted this as a signal that the government could expand fiscal stimulus, particularly if Takaichi strengthens her parliamentary position. The prospect of looser fiscal policy pushed the Japanese yen to its weakest level in nearly two years, boosting export-heavy stocks and adding further support to equities, despite concerns that such policies may strain Japan’s long-term fiscal health.
Chinese markets also posted solid gains, supported by strong economic data and optimism around artificial intelligence and semiconductors. The Shanghai Shenzhen CSI 300 and the Shanghai Composite Index rose more than 1% each, reaching multi-year highs, while Hong Kong’s Hang Seng Index added 0.5%. Data showed China’s trade surplus hit a record $1.25 trillion in 2025, with strong demand from Europe offsetting weaker U.S. exports. A sharp rise in December imports further raised hopes that domestic demand is recovering under continued policy support from Beijing.
Technology stocks in China and Hong Kong extended their rally, fueled by recent high-profile AI-related IPOs and growing confidence in the country’s push toward self-reliance in advanced chips. Chipmaking shares rose after reports that Beijing plans to limit access to Nvidia’s H200 AI chips, even after Washington approved their sale to China, reinforcing support for local semiconductor firms.
Elsewhere in Asia, markets were more subdued. South Korea’s KOSPI fell 0.3% as a tech-led rally cooled, while Australia, Singapore, and India also edged lower amid cautious global sentiment and concerns over U.S. trade policies.
