South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Asian stock markets suffered steep losses on Monday as investors locked in profits from the booming technology and artificial intelligence sectors, while escalating tensions between Iran and Israel further weakened market sentiment. The sharp sell-off followed a weak finish on Wall Street, where major U.S. indexes declined after stronger-than-expected employment data fueled concerns that interest rates could remain elevated for longer.
South Korea’s KOSPI index emerged as the region’s biggest loser, plunging nearly 9% at one stage as heavyweight semiconductor companies came under intense selling pressure. Samsung Electronics and SK Hynix, which have been key drivers of the market’s strong performance this year, both declined amid broader weakness in chip and AI-related stocks. However, SK Hynix limited some losses after announcing a partnership involving advanced AI chips with NVIDIA.
Japan’s Nikkei 225 also recorded significant declines, dropping more than 3% as investors reassessed valuations across the technology sector. Major technology investor SoftBank fell sharply, while semiconductor-related firms such as SUMCO and Renesas Electronics posted double-digit losses. Japan’s broader TOPIX index also moved lower after revised economic data showed first-quarter GDP growth slowing to 1.8%, below earlier estimates of 2.1%.
The downturn extended across Asia as renewed military exchanges between Iran and Israel heightened geopolitical uncertainty. The latest airstrikes weakened hopes for a lasting peace agreement and pushed oil prices higher, creating additional pressure on regional equities. Chinese markets also moved lower, with the CSI 300 and Shanghai Composite indexes posting notable losses, while Hong Kong’s Hang Seng Index and Singapore’s Straits Times Index followed the regional decline.
Despite the broad sell-off, U.S. stock futures showed signs of stabilization during Asian trading hours, with S&P 500 and Nasdaq 100 futures edging higher. Investors are now closely watching developments in the Middle East, movements in oil prices, and upcoming Federal Reserve decisions, all of which could influence the direction of global markets and the future of the AI-driven stock rally.
