ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
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 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian equity markets struggled to find clear direction on Thursday as investors navigated a rapidly shifting geopolitical landscape in the Middle East. Iran signaled conditional willingness to consider a U.S.-backed ceasefire proposal, offering a rare but uncertain diplomatic opening after weeks of escalating conflict.
Japan's Nikkei gained 0.6%, while South Korean equities fell 1.2%. The broader MSCI Asia-Pacific index (ex-Japan) slipped 0.23%, heading toward an 8.7% monthly decline — its worst performance since October 2022. The U.S. dollar remained near multi-week highs, on pace for a 2% monthly advance, reinforcing its role as the go-to safe-haven currency during periods of global uncertainty.
The nearly month-long conflict, ignited by joint U.S.-Israeli military strikes on Iran in late February, has effectively closed the Strait of Hormuz — a critical chokepoint responsible for roughly one-fifth of global oil and LNG shipments. The resulting supply disruption drove Brent crude above $100 per barrel, with futures trading at $103.35, reflecting a staggering 42% monthly surge. Energy analysts warn that structurally elevated oil prices may persist regardless of ceasefire negotiations.
Soaring energy costs have reignited inflation concerns worldwide, prompting traders to abandon expectations of a Federal Reserve rate cut in 2025. European Central Bank President Christine Lagarde echoed similar concerns, hinting at potential rate hikes if energy-driven inflation proves persistent across the eurozone.
Currency markets reflected the broader risk-off mood. The euro held at $1.1562 and sterling traded at $1.3358, while the Japanese yen lingered near 159.43 per dollar — a level closely monitored as a possible trigger for government intervention. Gold, despite its traditional safe-haven appeal, dropped roughly 14% this month — its sharpest monthly fall since October 2008 — as surging yields and a stronger dollar weighed heavily on the precious metal.
