MARKET UPDATE

Asia stocks climb as KOSPI rebounds.

Asian stock markets rose on Friday, led by a sharp rebound in South Korean shares, while investors digested the Bank of Japan’s decision to leave interest rates unchanged and a fresh batch of regional economic data.

The regional rally followed a strong session on Wall Street, where Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) delivered earnings that reinforced optimism over sustained AI investment, lifting the Nasdaq and broader technology sector.

BOJ keeps rates steady as expected

The Bank of Japan kept interest rates unchanged on Friday, maintaining its short-term policy rate at 1.0% as policymakers judged the economy remained on a moderate growth path despite headwinds from higher oil prices and geopolitical tensions in the Middle East.

The central bank said risks to inflation remain skewed to the upside and warned policymakers must pay close attention to the impact of Middle East developments, foreign exchange moves and global AI demand on Japan’s economy and prices.

 

Oil slips as Hormuz tanker traffic improves.

Oil prices slipped on Friday as crude flows out of the Persian Gulf increased despite renewed military exchanges between the U.S. and Iran and an expanding regional conflict.

As of 02:22 ET (06:22 GMT), Brent Oil Futures expiring in September fell 1.6% to $87.62 per barrel, while West Texas Intermediate (WTI) crude futures dropped 2% to $81.85 per barrel.

Both benchmarks were set for more than 8% weekly losses as renewed hopes for peace talks at the start of the week weighed on prices.

Still, they were set to surge nearly 20% in July, their biggest gain since March.

Ship-tracking data showed a modest increase in tanker movements through the Strait of Hormuz, easing some concerns over a prolonged disruption to one of the world’s most important oil transit routes.

Still, prices appeared supported after fresh U.S. strikes on Iranian military targets prompted retaliatory Iranian missile attacks on U.S. positions and regional allies.

 

Dollar set for July losses, yen falls.

The dollar firmed on Friday, but was headed for a loss in July after softer than expected inflation data released this week raised more doubts over the Federal Reserve’s plans to raise interest rates in the near-term.

The Japanese yen weakened after the Bank of Japan held interest rates as expected, cutting short an overnight rally that was reportedly sparked by government intervention.

Broader currencies moved in a tight range, seeing limited support as anxiety over the U.S.-Iran war and its economic impact left traders cold towards risk-heavy propositions.

The pound and euro fell 0.16% apiece in early trade, while the Australian dollar was flat.

The South Korean won was a notable decliner, with the USD/KRW pair surging 1.1% as it reversed a sharp overnight drop that was reportedly caused by government intervention. The won touched its strongest level in five months Thursday night.

The Chinese yuan’s USD/CNY pair fell 0.1% after purchasing managers index data for July largely disappointed and showed both manufacturing and services activity in contraction.

Yen trims post-intervention rally; BOJ holds rates, trims CPI outlook

The Japanese yen’s USD/JPY pair rose 0.7% to above 160 yen on Friday. The pair had fallen as much as 3% overnight to as low as 158 yen, with a host of media reports attributing currency market intervention by Tokyo.

 

 

 

 

 

 

 

Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement