Trading Economics-


Household spending in Japan fell 0.4% yoy in May 2026, following a 0.5% decline in the prior month and beating market expectations for a 2.5% fall. It marked the sixth straight month of contraction but the softest in the sequence, suggesting consumer spending was showing some resilience despite persistent inflation and weak real wage growth. Spending remained weak on transport and communication (-15.8% vs 7.5% in April), utilities (-7.6% vs -8.6%), and culture and recreation (-3.1% vs 6.3%). Meanwhile, expenditure rose on food (2.4% vs -0.6%), housing (0.7% vs 7.6%), furniture and household goods (23.0% vs 19.0%), healthcare (3.3% vs 6.7%), clothing and footwear (4.0% vs -10.9%), and education (21.7% vs -19.4%). On a seasonally adjusted monthly basis, household expenditure rose 3.7%, accelerating from 1.3% in April and exceeding forecasts of 1.4%. It was also the fastest monthly increase since last November.

Trading Economics-


Japan’s foreign reserves fell by USD 18.40 billion to USD 1.287 trillion at the end of June 2026 from USD 1.306 trillion in May, extending the previous month’s sharp decline. Foreign currency reserves stood at USD 1.091 trillion, comprising USD 928.58 billion in securities and USD 161.93 billion in deposits. Of the deposits, USD 161.50 billion were held with foreign central banks and the Bank for International Settlements (BIS), while deposits with banks headquartered in Japan totaled USD 405 million and those with foreign banks amounted to USD 25 million. Japan’s IMF reserve position was USD 11.31 billion, SDR holdings were valued at USD 60.39 billion, and gold reserves stood at USD 109.51 billion. Other reserve assets totaled USD 15.76 billion, while other foreign currency assets came in at USD 34.12 billion.

Trading Economics-


Asian equity markets mostly fell on Tuesday as renewed selling in technology stocks overshadowed the tech-led rally on Wall Street overnight. Regional sentiment weakened after Samsung Electronics shares tumbled more than 5% despite reporting strong profit growth, driven by robust demand for AI data center memory chips. SK Hynix also dropped nearly 4% after launching the formal marketing process for its planned US listing. As a result, South Korea’s KOSPI Composite Index fell nearly 6%, while Japan’s Nikkei 225 Index lost more than 1%. Markets in Australia and mainland China also traded lower, while Hong Kong equities extended gains for a fourth consecutive session.

Trading Economics-


The benchmark KOSPI fell 4.91% to close at 7,656 on Tuesday, extending losses from the previous session as investors took profits in heavyweight technology stocks following a strong AI-driven rally. Technology shares remained under pressure as investors grew more cautious toward the AI trade amid recent weakness in global semiconductor stocks and concerns over whether robust earnings can justify lofty valuations. Samsung Electronics (-7.23%) tumbled despite reporting record preliminary second-quarter earnings that beat expectations, with the strong results largely seen as priced in, while SK Hynix (-6.40%) declined ahead of its planned US listing. Additionally, battery stocks weakened after LG Energy Solution (-7.05%) posted quarterly operating profit well below forecasts, reinforcing concerns over sluggish global EV demand. Other major decliners included SK Square (-10.03%), Hyundai Motor (-5.38%), HD Hyundai Heavy Industries (-5.83%), Hanwha Aerospace (-3.80%), and Kia Corp (-4.92%).

Trading Economics-


The Shanghai Composite slid 1.26% to close at 3,990.2 on Tuesday, while the Shenzhen Component lost 1.24% to 15,225.1, with both benchmarks settling at their lowest levels in nearly a month as concerns over China's economic growth outlook weighed on sentiment. The World Bank forecast China's growth to moderate to 4.4% in 2026 and 4.3% in 2027, citing a prolonged property-sector slump and subdued consumer demand. Adding to the cautious sentiment, the government set a 2026 GDP growth target of 4.5%–5.0%, the lowest since 1991 and the first downward revision since 2023, after maintaining a target of around 5% for the previous three years. Meanwhile, US President Donald Trump signaled plans to meet Chinese President Xi Jinping on September 24 on the sidelines of the annual United Nations General Assembly in New York. Among the notable decliners were Kweichow Moutai (-1.5%), China Life Insurance (-3.12%), Zijin Mining Group (-2.33%), CATL (-0.54%), BYD (-1.46%), and Midea Group (-1.1%).

Trading Economics-


The World Bank on Tuesday projects China's economic growth to slow to 4.4% in 2026 and 4.3% in 2027, citing a prolonged property market downturn and cautious consumer spending. It warned that a deeper housing slump could further weigh on consumption, real estate investment, and related industries. The outlook follows continued weakness in the housing market, with new home prices falling 3.5% year-on-year in May, marking the 35th consecutive monthly decline. Despite these challenges, China's economy expanded 5.0% year-on-year in Q1 2026, supported by resilient exports. However, the government set its 2026 GDP growth target at 4.5%–5.0%, the lowest since 1991 and the first downward revision since 2023, after maintaining a target of around 5% over the previous three years.

Trading Economics-


The S&P Global Egypt PMI fell to 46.0 in June 2026 from 47.1 in May, signaling the sharpest contraction in the non-oil private sector in nearly three and a half years. Business conditions weakened as new orders fell at the fastest pace since November 2022, pressured by weak liquidity, supply disruptions, raw material shortages, and the Middle East conflict. Output, purchasing activity, and employment all contracted, although job losses eased slightly from May. Supply chain pressures remained elevated, with delivery times lengthening further due to shipping disruptions in the Strait of Hormuz, raw material shortages, and higher fuel costs. Meanwhile, input cost and output price inflation moderated from May's near-record highs, though fuel, raw material, and wage pressures remained significant. Looking ahead, business confidence stayed positive despite easing slightly from May, supported by expectations of reduced geopolitical disruptions and stronger government support.

Trading Economics-


The NZX 50 was flat at 13,763 at the close on Tuesday, erasing gains from morning trade while remaining at a record high, as gains in healthcare and communication services offset declines in consumer staples, materials, and utilities. Traders were cautious ahead of the RBNZ's monetary policy decision on Wednesday, with the market expecting the central bank to raise its policy rate by 25 bps to 2.5%. Traders also anticipated the release of the Fed's June meeting minutes for guidance on the outlook for interest rates. However, a rally on Wall Street overnight, buoyed by the tech sector and easing oil prices, continued to lift sentiment as inflation concerns subsided, reducing expectations of an interest rate hike. AFT Pharmaceuticals jumped 4.9%, Ebos Group and Westpac Banking Corporation each gained 1.4%, and Fisher & Paykel rose 1.3%. Meanwhile, A2 Milk, Contact Energy, and Vulcan Steel each fell 1.7%, while Vector Limited and Summerset Group dropped 1.0% and 0.7%, respectively.

Trading Economics-


The ASX 200 lost 27 points or 0.3% to close at 8,804 on Tuesday, marking the second straight session of losses as weaker futures for S&P 500 and Nasdaq set a cautious tone ahead of the Federal Reserve’s June meeting minutes. Nerves also persisted before key June CPI and PPI readings from top trading partner China later this week. Locally, elevated borrowing costs, a cooling housing market, and geopolitical uncertainty weighed on Australia's economy, highlighted by a slight drop in June job ads. Major laggards included non-energy minerals, consumer non-durables, logistics, and energy minerals, partly offset by gains in tech services, healthcare, and financials. Gold stocks tumbled 4.3%, as bullion retreated. Northern Star Resources, Australia's largest listed gold miner, dipped 5.1%. Miners lost 2.9%, with iron ore mining giant Rio Tinto down 1.8%. In contrast, WiseTech Global jumped 5.7% after naming a new chair. Meanwhile, the four big banks advanced between 0.9% and 1.6%.

Trading Economics-


China’s foreign exchange reserves fell to $3.416 trillion at the end of June 2026, down from an over ten-year high of $3.442 trillion touched in May and below market expectations of $3.44 trillion. The decline followed a 2.3% rise in the US dollar against a basket of currencies, its strongest monthly gain since July 2025, amid expectations of a Federal Reserve rate hike this year. China’s central bank continued its gold-buying streak for a 20th month, with reserves reaching 75.44 million fine troy ounces by June’s end, up from 74.96 million in May. However, the value of these reserves dropped to $303.72 billion from $340.75 billion.

Trading Economics-


India’s BSE Sensex closed marginally down at 78,180.7 on Tuesday, halting a four-day rally, as investors locked in gains late in the session ahead of the Fed minutes and amid rising oil prices.driven by renewed US-Iran tensions. Meanwhile, market sentiment was tempered by the return of foreign inflows, the improving monsoon's outlook and optimism around the earnings season. Among key movers, fashion retailer Trent plunged over 12% and led losses among stocks, after reporting softer-than-expected standalone revenue growth for the June quarter. Other notbale decliners included Adani Ports (-1.6%), Bharat Electronics (-1.6%), L&T (-1.2%) and Reliance (-1.1%). On the flip side, IT, consumer durables and FMCG shares saw increased buying interest. HCL Tech (3.1%), Tech Mahindra (2.8%) and Infosys (2.8%) all advanced solidly. Titan Company rose 2.6% after posting a strong first-quarter business update, citing healthy consumer demand, store expansion, and strong international growth.

Trading Economics-


The S&P/TSX Composite Index edged down to trade below 35,500 on Tuesday, weighed by losses in mining stocks. Gold prices declined as investors assessed renewed Middle East tensions and awaited the minutes from the Fed's June meeting for clues on monetary policy. Agnico Eagle, Franco-Nevada, and WPM fell about 1%, while Barrick lost 2%. Oil prices, which had retreated to near pre-conflict levels.The rebound supported energy stocks, with Canadian Natural up more than 1% and Suncor and Imperial Oil gaining about 2%, but also lifted Canadian bond yields on renewed inflation concerns, limiting gains for financials. RBC, TD Bank, and BMO edged higher, while Scotiabank lost more than 1.5%. Shopify rose 2.5%, tracking gains in US tech services stocks.

Trading Economics-


US stock indices retreated on Tuesday amid losses for the heavyweight chip sector and fresh deterioration in the macroeconomic backdrop. The S&P 500 fell 0.7%, the Nasdaq 100 tanked 2.7%, while the Dow pulled back from a record high reached in morning exchanges. Memory producers sank even though Samsung posted a 19-fold surge in profit last quarter, as markets grow increasingly skeptical on whether AI hyperscalers can justify elevated levels of capital expenditure on infrastructure. Micron, Sandisk, and Applied Materials lost between 8%-10%. Consistently, SpaceX dropped 6% amid its inclusion in the Nasdaq 100. On top of that, Nvidia fell 1.5% and AMD slid 8% on reports that China's Deepseek is developing its own AI chip. In turn, broader sectors were pressured by higher bond yields after strikes on tankers in the Strait of Hormuz rekindled worries of energy inflation. Caterpillar, Deere, and GE Vernovia lost between 5% and 10%.

Trading Economics-


The FTSE 100 rose 0.3% to a four-month high on Tuesday, outpacing losses in both Europe and the US amid gains in energy stocks and limited exposure to the tech sector. Shell added 3.8% after saying that it expects gas trading in its second quarter to be “significantly” higher than in the first. BP also gained 1.7% as oil prices climbed following fresh attacks on shipping vessels in the Strait of Hormuz. Meanwhile, Diageo and AB Foods rose by around 3.7% each, Unilever gained 3.2% and Relx nearly 3%. On the other hand, mining stocks were under pressure, with Anglo American and Antofagasta retreating by over 4%, Fresnillo down 3.9% and Endeavour falling 2.9%. On the economic front, domestic data encouraged home buyers as the Lloyds house price index, formerly branded under Halifax, reported a 0.2% monthly price increase for June, marking the first gain in four months due to easing mortgage rates.

Trading Economics-


European stocks declined sharply in the afternoon for a negative close on Tuesday amid higher sovereign bond yields and fresh pressure from the volatile tech sector. The Euro STOXX 50 dropped 1.1% to 6,329 and the STOXX Europe 600 lost 0.5% to 647. ASML sank 7.3% and Infineon plunged 8.3%, tracking AI hardware producers across the globe as the surge in Samsung's quarterly profit estimates prompted investors to reassess the lofty valuations underpinning the AI-driven rally. Companies with exposure to datacenter power also sank, with Siemens and Schneider falling around 4% each, while Siemens Energy sank 9%. The other sectors in European exchanges were mostly higher, with luxury brands and consumer staples rebounding from their pullback yesterday. L'Oreal added 2.7% while both LVMH and Hermes gained around 1%.