Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
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 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
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 
Japan's manufacturing sector shrank for the 10th consecutive month in April, as global demand softened and concerns over U.S. trade tariffs intensified. The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose slightly to 48.7 in April from 48.4 in March. Although marginally better than the flash reading of 48.5, it remained below the 50 threshold that indicates growth.
Weaker overseas demand, particularly from China, Europe, and the U.S., weighed heavily on output. Export orders fell at their fastest pace since October 2023, while total new orders declined at the quickest rate since February 2024. Japanese manufacturers reported sluggish customer spending and reduced demand for semiconductors and machinery.
Adding to the pressure, ongoing tariffs from the U.S.—especially those targeting automobiles, a key Japanese export—have further dampened confidence. Japan’s chief trade negotiator, Ryosei Akazawa, is set to meet with U.S. counterparts this week to push for the full removal of these tariffs.
Business sentiment fell to its lowest level since June 2020, reflecting widespread concern over global economic prospects. Annabel Fiddes, Economics Associate Director at S&P Global, noted that firms are unlikely to see recovery without a rebound in domestic and external demand.
While input costs rose at the softest pace in a year, expenses related to transport, fuel, labor, and raw materials continued to pose challenges for manufacturers. As Japan’s industrial sector navigates prolonged weakness, future recovery hinges on a stabilization in global trade and improved demand dynamics.
