Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Japan’s exports increased for a fourth consecutive month in December, highlighting the resilience of the country’s trade sector despite slower shipments to the United States. According to government data released Thursday, the rise in exports was supported by strong overseas demand outside the U.S. and the continued depreciation of the yen, which has made Japanese goods more competitive globally.
Total exports by value grew 5.1% year-on-year in December. While this marked a slowdown from November’s 6.1% growth and fell short of the market’s median forecast of a 6.1% increase, it still reflected steady momentum in Japan’s export-driven economy. The weaker yen played a key role in boosting export revenues, particularly in Asia and other regions.
Exports to the United States dropped sharply, falling 11.1% compared with the same period last year. In contrast, shipments to China rose 5.6%, helping to offset the decline in U.S.-bound goods. Strong demand from other global markets also contributed to overall export growth, underscoring Japan’s diversified trade relationships.
On the import side, Japan saw a 5.3% year-on-year increase in December, exceeding market expectations of a 3.6% rise. Higher imports, combined with slower export growth, resulted in a trade surplus of 105.7 billion yen, or about $667 million. This figure was significantly lower than the forecast surplus of 356.6 billion yen, but still marked a positive balance.
Japan’s export performance has been supported not only by the weaker yen but also by a relatively firm U.S. economy and a trade agreement with Washington reached in September. That deal established a baseline 15% tariff on most goods, and its overall impact on Japanese exports has been milder than initially feared, even as U.S.-bound shipments declined in December.
Reflecting easing concerns over trade tensions, the Japanese government revised its economic growth forecast for the fiscal year ending in March to 1.1%, up from a previous estimate of 0.7%. Meanwhile, the Bank of Japan raised its policy rate in December to 0.75%, the highest level in three decades. The central bank is widely expected to signal readiness for further rate hikes, as yen weakness and expectations of solid wage growth keep inflation risks in focus.
