South Korea’s inflation rate reaches highest level in more than two years, strengthening case for rate hike
South Korea’s inflation rate in June was 3.2%, the highest level since December 2023.
The figure was in line with economists’ expectations polled by Reuters, marking the fourth straight month of accelerating inflation.
This reading strengthens the case for a rate hike by the Bank of Korea, whose next meeting is scheduled for July 16.
— Lim Huijie
South Korea’s Kospi fell more than 5% on the move, triggering a trading halt
Asia-Pacific markets were mostly lower early Thursday, with South Korea’s Kospi leading the decline.
of Kospi The Korean exchange temporarily suspended trading for five minutes to control volatility. The small-cap Kosdaq fell 3.55%.
Japan’s Nikkei Stock Average fell by 0.70%, while TOPIX rose by 0.13%.
australian benchmark S&P/ASX 200 It fell by 0.59%.
—Justina Lee
Asia-Pacific markets are expected to follow US stocks and start sharply lower
Asia-Pacific markets were set to open mostly lower on Thursday as investors sought to book profits in semiconductor stocks, tracking losses on Wall Street.
Japan’s Nikkei Stock Average is trending lower, with Chicago futures trading at 69,750 and Osaka futures at 69,610, with the index’s previous closing price at 70,474.96.
Hong Kong’s Hang Seng index returned from the holiday and opened higher. Futures traded at 22,990 and the index’s last closing price was 22,881.02.
In Australia, futures traded at 8,687 and the S&P/ASX 200 closed at 8,722.90.
The situation in the Middle East continues to be watched after President Donald Trump said that talks between the United States and Iran in Qatar are progressing smoothly.
“As far as things are going, we’re on track to denuclearize Iran,” Trump told reporters. “They had a very good meeting, so we’ll see.”
— Justina Lee
Wells Fargo says the drop in Mag7 is a healthy reaction.
Darrell Cronk, president of Wells Fargo Investment Research, said the drop in the Magnificent Seven should be seen as a buying opportunity.
“I would characterize the recent backlash as a healthy reset rather than a structural rupture. However, it reveals some important shifts in the market’s mindset towards Big Tech. AI is moving from excitement to scrutiny. From building at all costs to prove the ROI story. We remain positive on the sector despite the recent backlash, but we will become more selective.”
— Fred Imbert
Treasury announces investment options for Trump account
US will not renew USMCA
The Trump administration has decided not to renew the trilateral trade agreement with Canada and Mexico, opting instead for an annual review of what President Donald Trump once called “the best deal we’ve ever had.”
The widely anticipated decision on the United States-Mexico-Canada Agreement, known as USMCA, was revealed on Wednesday, the deadline for North America’s three trading partners to decide whether to renew the agreement for another 16 years.
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— Kevin Breuninger
Stock futures open near flatline
U.S. stock futures were trading near a flat line Wednesday night.
Futures tracking the Dow Jones Industrial Average fell 79 points, or 0.2%. S&P 500 futures fell 0.1%, as did Nasdaq 100 futures.
— Fred Imbert
