UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
Trump Imposes New Tariffs on Drone Imports Over US Security Concerns 
S&P 500 Hits Record High as Soft Inflation Data Eases Fed Rate Hike Fears 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Asian Currencies Edge Higher as Soft US Inflation Weighs on Dollar 
France Inflation Rises 2.4% in July as Consumer Prices Increase 
US Dollar Slips as Softer PPI Data Eases Fed Rate Hike Expectations 
Barclays Warns U.S. Stock Rally May Be Detached From Fundamentals 
Trump Imposes New US Tariffs on Drone Imports Over National Security Concerns 
Gold Prices Slip From Two-Month High as Inflation and Fed Outlook Drive Markets 
Asian Stocks Rise as AI Chip Rally Lifts South Korea, Japan 
Strait of Hormuz Shipping Near Standstill After New Vessel Attacks 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
Asian Currencies Steady as Dollar Holds Firm After U.S. Inflation Data 
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Asian stock markets retreated on Thursday after an AI-fueled rally lost momentum, while oil prices remained stable as investors weighed the prospects of a potential Iran peace agreement and awaited key U.S. economic data.
MSCI’s broad Asia-Pacific index excluding Japan dropped 0.69%, with technology stocks leading the decline. South Korea’s benchmark index fell 3.64%, while Japan’s Nikkei lost 1.57%. Samsung Electronics declined 2.44%, SK Hynix tumbled 6.95%, Kioxia slid 9.61%, and Tokyo Electron fell 4.61%, reflecting weaker sentiment across the semiconductor sector.
The regional pullback followed losses on Wall Street, where the Nasdaq ended its multi-day winning streak after disappointing investor reactions to quarterly earnings from SpaceX and Advanced Micro Devices (AMD). Although SpaceX highlighted stronger-than-expected returns from its artificial intelligence investments, concerns remain over whether its profitable Starlink business can continue funding expensive AI infrastructure. AMD also exceeded analyst estimates but failed to meet elevated market expectations.
Oil prices traded in a narrow range as markets monitored reports of a possible agreement between Iran and Oman aimed at ending months of conflict involving the United States. According to Reuters, the proposed deal would give Tehran greater control over vessels entering the Gulf through the Strait of Hormuz, a vital global energy shipping route. Brent crude slipped 0.18% to $79.31 per barrel, while U.S. West Texas Intermediate eased 0.35% to $74.96.
Investors are also focusing on Friday’s U.S. nonfarm payrolls report after ADP data showed private employers added just 44,000 jobs in July, well below expectations. Economists surveyed by Reuters forecast payroll growth of 80,000 jobs, with the unemployment rate expected to remain at 4.2%. Following the weaker labor data, markets reduced expectations for a Federal Reserve rate hike in September to around 54%.
In currency markets, the U.S. dollar traded near 157.66 yen after last week’s rare joint intervention by Japan and the United States to support the Japanese currency. Analysts expect USD/JPY to remain range-bound until the U.S. employment report provides clearer direction. Meanwhile, safe-haven demand lifted spot gold 1.06% to $4,290.26 per ounce, while silver gained 0.65% to $62.48.
