South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
The U.S. dollar strengthened on Tuesday as investors reacted to stalled negotiations between the United States and Iran, alongside anticipation surrounding a busy week of global central bank interest rate decisions. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, rose by 0.2% to 98.64, reflecting renewed demand for the safe-haven currency.
Market sentiment was heavily influenced by geopolitical developments after reports indicated a deadlock in U.S.-Iran talks. President Donald Trump reportedly rejected Iran’s proposal aimed at ending the two-month conflict and reopening the Strait of Hormuz, a crucial global oil transit route. The proposal allegedly delayed discussions on Iran’s nuclear program, a key sticking point for Washington. With negotiations faltering and no immediate resolution in sight, uncertainty continues to weigh on global markets.
The closure of the Strait of Hormuz has significantly impacted oil prices, pushing Brent crude higher due to supply concerns. As roughly 20% of the world’s oil passes through this narrow waterway, disruptions have sparked fears of an energy-driven inflation surge. This has raised expectations that central banks may adopt a more hawkish stance, potentially increasing interest rates to counter inflationary pressures.
In currency markets, the Japanese yen weakened slightly, with USD/JPY rising to around 159.60 after the Bank of Japan maintained its interest rate at 0.75%. However, internal divisions emerged, as three policymakers voted for a rate hike, signaling a possible shift toward tighter monetary policy. The BoJ also revised its inflation outlook upward, suggesting further rate increases could be on the horizon.
Investors are closely watching upcoming decisions from major central banks, including the Federal Reserve, European Central Bank, and Bank of England. While rising oil prices and geopolitical risks may influence policy direction, many analysts expect central banks to remain cautious for now.
Meanwhile, the euro and British pound both edged lower against the dollar, highlighting the greenback’s continued strength amid global economic uncertainty.
