US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
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 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian markets opened with a cautious tone Monday as geopolitical tensions in the Middle East continued shaking investor confidence. U.S. President Donald Trump's stern warning to Iran — threatening devastating military strikes if the Strait of Hormuz remains closed past Tuesday — sent ripples across stocks, bonds, and commodities at the start of the trading week.
Equity performance was uneven amid thin holiday liquidity across much of the region. S&P 500 e-mini futures dipped 0.2%, while the MSCI Asia-Pacific ex-Japan index edged 0.5% higher. Japan's Nikkei 225 outperformed with a 1.2% gain, and South Korea's Kospi climbed 2%, suggesting selective optimism despite the broader uncertainty.
Oil markets reacted sharply to the escalating standoff. Brent crude surged 1.4% to $110.58 per barrel after OPEC+ members agreed Sunday to boost output by 206,000 barrels per day in May. However, analysts noted the production increase remains largely symbolic, as several key Gulf producers have suffered significant damage to oil facilities and transport networks since the conflict began.
Bond markets reflected growing unease. The U.S. 10-year Treasury yield rose nearly 5 basis points to 4.36%, while Japan's government bond yield hit its highest level since February 1999, climbing to 2.4% amid mounting inflation concerns. The U.S. dollar index held steady near 100.23, with the greenback flat against the Japanese yen at 159.64.
On the data front, March's U.S. jobs report offered an encouraging signal, with nonfarm payrolls rising by 178,000 — the strongest monthly gain in over a year. The unemployment rate dropped to 4.3%. Despite the solid labor market reading, market expectations for Federal Reserve rate cuts remain muted, with traders pricing in no policy changes until September 2027.
Gold retreated 0.8% to $4,638.54, while Bitcoin advanced 1.9% to $68,915.85, and Ether gained 2.4% to $2,117.61. Investors will be closely watching upcoming releases including the FOMC minutes, CPI data, and personal income figures as geopolitical developments continue driving market direction this week.
