Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Japanese stocks remain under pressure as investors react to U.S. tariff risks, economic slowdown fears, and the Bank of Japan’s policy stance. The Nikkei 225, which had been fluctuating between 38,000 and 40,000 since late 2024, recently dropped below 38,000, raising concerns about further declines.
Citi analysts attribute this weakness to multiple factors, including disappointing U.S. economic data, uncertainty over President Donald Trump’s proposed tariffs, a strengthening yen, and corrections in high-tech stocks linked to U.S. markets. Trump’s tariff plans target key sectors like autos, semiconductors, and pharmaceuticals, while a report on reciprocal tariffs, expected in August, could bring further trade restrictions.
Despite these risks, Citi believes Japanese equities have already factored in much of the negative sentiment, with valuations trailing global peers. While short-term volatility is likely, the Nikkei 225 may find support around 35,500, with the TOPIX stabilizing near 2,550.
