Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
The U.S. dollar weakened on Wednesday as investors embraced risk following a fragile ceasefire between Israel and Iran, brokered by President Donald Trump. Global markets rallied, with equities hitting record highs, as both nations signaled a pause in hostilities after Trump publicly condemned violations of the truce.
During the 12-day conflict, the dollar served as a safe haven, but optimism over a de-escalation spurred broad selling. In early Asian trading, currency movements remained subdued. The euro hovered near its highest level since October 2021 at $1.1621. The British pound slipped slightly to $1.3615, just off a two-year high. The Australian dollar edged up 0.02% to $0.6492 after a strong rally, while the New Zealand dollar gained 0.13% to $0.6015.
The Japanese yen held steady at 144.96, as Bank of Japan officials showed caution over rate hikes amid uncertainty from U.S. tariffs. The Swiss franc, which surged to a 10.5-year high on Tuesday, stabilized at 0.8049 per dollar.
The U.S. dollar index dipped to 97.91. While Fed Chair Jerome Powell reiterated a patient stance on rate cuts during his congressional testimony, markets still price in an 18% chance of a rate cut in July. Analysts at ANZ expect rate cuts could resume in September due to slowing economic growth and easing inflation, despite new tariffs.
Recent U.S. data, including a drop in consumer confidence and signs of labor market weakness, reinforced expectations of nearly 60 basis points of rate cuts by year-end. Meanwhile, the two-year Treasury yield fell to 3.7870%, its lowest in over a month, while the 10-year yield was steady at 4.3043%.
