UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
The U.S. dollar held steady Wednesday ahead of a crucial Federal Reserve policy meeting, with investors cautious amid an uncertain economic outlook and renewed capital outflows from Asian markets. News of upcoming U.S.-China trade talks, set for Saturday in Switzerland, helped ease fears of an escalating trade war. Treasury Secretary Scott Bessent and trade chief Jamieson Greer will meet China’s top economic official, following hints from President Trump about potential trade deals this week.
Fed Chair Jerome Powell is expected to signal that more economic data is needed before making any policy moves. While the Fed is anticipated to keep rates unchanged, markets are split on whether cuts will resume by July or be delayed due to persistent inflation concerns.
Currency markets showed signs of stabilization following extreme volatility. Taiwan’s dollar, which had surged over 10% after Trump’s tariff announcement on April 2, weakened slightly by 0.65%. The Korean won touched a six-month high before retreating, while the Chinese yuan softened after China’s central bank announced its first reserve requirement ratio (RRR) cut of 2025 to support growth.
The U.S. dollar index remained flat after three consecutive daily losses, while the euro dipped 0.2% to $1.1340 after Friedrich Merz’s election as Germany’s chancellor. Meanwhile, the Japanese yen weakened 0.4% following a holiday, and the Hong Kong dollar hovered near the strong end of its trading band.
Analysts at Deutsche Bank warned that sharp currency shifts, like those in Taiwan, could ripple across markets with large unhedged dollar positions. Japan, with $2 trillion invested in U.S. assets via pension and insurance firms, remains highly exposed. A stronger yen could erode returns, pressuring Japan’s institutional investors.
