Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
The Japanese yen continued to struggle on Wednesday, slipping further as investors remained focused on the widening interest rate gap between Japan and other major economies. Despite expectations that the Bank of Japan (BOJ) will tighten monetary policy next week, the yen hovered near 156.82 per dollar after a sharp 0.6% decline the previous session, showing no clear catalyst for the move. The currency also stayed pinned near a record low against the euro, while the Australian dollar maintained its strong performance against the yen following Tuesday’s gains.
Analysts attribute the yen’s vulnerability to rising long-term U.S. yields and ongoing concerns about Japan’s fiscal outlook. Alex Hill of Electus Financial noted that market sentiment continues to pressure the yen and suggested further weakness may extend into the new year. He added that crosses such as kiwi/yen and Aussie/yen appear well positioned for additional upside. Although the BOJ is expected to raise interest rates, investors are watching closely for signals from Governor Kazuo Ueda regarding the bank’s future policy direction, particularly as Japan weighs new fiscal measures that complicate its already delicate economic landscape.
Broader currency markets traded cautiously ahead of the U.S. Federal Reserve’s policy announcement. A 25-basis-point rate cut is widely expected, keeping the dollar stable with the dollar index holding at 99.23. The euro traded near $1.1625, while sterling edged slightly higher to $1.3301. Market participants will be closely analyzing Fed Chair Jerome Powell’s comments and the updated dot plot, which may offer clues about rate cut expectations for 2026.
In the commodity-linked currencies, the Australian dollar traded at $0.6643 after nearing a three-month high on hawkish remarks from the Reserve Bank of Australia. The New Zealand dollar eased slightly to $0.5776. Investors remain attentive to U.S. economic data and shifting inflation expectations as central banks navigate diverging policy paths.
