Asia-Pacific Market Update: Trump Faces Critical Decision on Iran

The Reserve Bank of New Zealand (RBNZ) reported that its inflation model for Q2 2026 remains unchanged at 2.7% year-on-year. In geopolitical developments, Israeli intelligence suggests that Iran has relocated nuclear centrifuges into tunnels at Pickaxe Mountain, raising concerns about potential military action from the U.S. Goldman Sachs warns that Brent crude oil prices could exceed $120 per barrel if disruptions in the Strait of Hormuz continue.

In South Korea, the ruling party is urging regulators to impose stricter oversight on leveraged exchange-traded funds amid concerns over market volatility. The South Korean won has weakened, prompting discussions on leveraged product risks.

The People's Bank of China set the USD/CNY central rate at 6.7917, slightly above market expectations. China's national team has reportedly spent nearly $9 billion to stabilize stock markets amid ongoing economic pressures.

In the U.S., Trump announced new tariffs of up to 50% on Canadian alcohol, dairy, and automotive products, citing unfair trade practices. Canadian Prime Minister Mark Carney has indicated a willingness to negotiate rather than retaliate immediately.

New Zealand's inflation rate surged to 4.1% in Q2, exceeding forecasts and reinforcing expectations for a rate hike from the RBNZ in September. The NZD/USD initially rose on the CPI data but later pared gains as the RBNZ's sectoral model suggested a more subdued outlook.

The South Korean Kospi index rose 4.00% intraday, buoyed by gains in major tech stocks such as SK Hynix and Samsung Electronics. Gold prices increased by 1% amid the heightened geopolitical tensions.

The London Stock Exchange announced plans to launch a night trading venue in the first half of 2027, aimed at providing access to exchange-traded products tracking UK and U.S. equities.