{"id":64272,"date":"2026-07-05T21:38:21","date_gmt":"2026-07-06T01:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-rally-as-rate-hike-bets-recede-south-korea-targets-chip-supremacy\/64272\/"},"modified":"2026-07-05T21:38:21","modified_gmt":"2026-07-06T01:38:21","slug":"asian-markets-rally-as-rate-hike-bets-recede-south-korea-targets-chip-supremacy","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-rally-as-rate-hike-bets-recede-south-korea-targets-chip-supremacy\/64272\/","title":{"rendered":"Asian Markets Rally as Rate Hike Bets Recede; South Korea Targets Chip Supremacy"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Dollar hits two-week lows<\/strong> as June non-farm payrolls grew by only <strong>57,000<\/strong>, sharply missing expectations and cooling bets for a near-term Federal Reserve rate hike.<\/li>\n<li><strong>South Korea&#39;s President Lee<\/strong> announced a massive <strong>896 trillion won ($578 billion)<\/strong> investment plan and a new &quot;control tower&quot; committee to secure &quot;absolute supremacy&quot; in the global AI and chip markets.<\/li>\n<li><strong>Singapore\u2019s Straits Times Index (STI)<\/strong> surged to a record high of <strong>5,253.99<\/strong>, driven by resilient banking performance and a structural boost from the government&#39;s equity development program.<\/li>\n<li><strong>Japanese Government Bond (JGB) yields<\/strong> continued their ascent, with the 30-year yield hitting <strong>4.045%<\/strong> amid persistent concerns over fiscal expansion and yen volatility.<\/li>\n<li><strong>Major South Korean oil refiners<\/strong>, including SK Energy and GS Caltex, face indictment over alleged <strong>26 trillion won<\/strong> price collusion following recent geopolitical instability.<\/li>\n<\/ul>\n<h2>Currency and Bond Markets<\/h2>\n<p>The <strong>US Dollar Index (DXY)<\/strong> retreated toward <strong>100.70<\/strong> after a &quot;Goldilocks&quot; jobs report showed US payroll growth slowed to just <strong>57,000<\/strong> in June. This cooling labor market has led traders to pare back expectations for a September rate hike, with CME FedWatch tools now pricing in a <strong>52% probability<\/strong>, down from <strong>64%<\/strong> earlier in the week.<\/p>\n<p>In Japan, the <strong>Yen (JPY)<\/strong> remains in sharp focus, hovering near 40-year lows despite a slight rebound on intervention risks. Meanwhile, the <strong>30-year Japanese government bond yield<\/strong> climbed to <strong>4.045%<\/strong>, and the <strong>5-year yield<\/strong> rose to <strong>1.930%<\/strong>, as investors react to Prime Minister Sanae Takaichi\u2019s expansionary fiscal plans and the Bank of Japan&#39;s shifting policy stance.<\/p>\n<h2>Semiconductor and Tech Surge<\/h2>\n<p>South Korea is doubling down on its technology sector, with President Lee Jae Myung set to launch a dedicated committee in August to bolster chip competitiveness. The initiative includes a <strong>W800 trillion<\/strong> second chip belt and a nationwide expansion of AI data centers, with major participation from Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>).<\/p>\n<p>Chinese tech shares also showed strength at the open, with the <strong>CSI All Share Integrated Circuits Index<\/strong> and the <strong>STAR Chip Index<\/strong> both poised to start the session up <strong>2%<\/strong>. This follows a period of heavy rotation, as analysts suggest the recent pullback in tech offers a favorable entry point for long-term positioning.<\/p>\n<h2>Regional Economic Indicators<\/h2>\n<p>Australia reported a cooling of inflationary pressures, with the <strong>Melbourne Institute Inflation Gauge<\/strong> falling <strong>0.4%<\/strong> month-on-month in June. The year-on-year figure moderated to <strong>3.9%<\/strong> from <strong>4.4%<\/strong>, providing the Reserve Bank of Australia (RBA) with potential breathing room as it monitors a weakening job market, evidenced by a <strong>0.2%<\/strong> drop in <strong>ANZ-Indeed Job Advertisements<\/strong>.<\/p>\n<p>In Southeast Asia, Singapore\u2019s benchmark index reached an all-time peak, supported by heavyweights like DBS Group (<a href=\"\/stock\/D05\">D05<\/a>) and Singapore Airlines (<a href=\"\/stock\/C6L\">C6L<\/a>). The market continues to benefit from its safe-haven status and the government&#39;s <strong>S$6.5 billion Equity Market Development Programme<\/strong>, which has reinforced institutional participation.<\/p>\n<h2>Corporate and Regulatory Developments<\/h2>\n<p>South Korean prosecutors have indicted four major refiners\u2014SK Energy, GS Caltex, S-Oil (<a href=\"\/stock\/010950\">010950<\/a>), and HD Hyundai Oilbank\u2014on charges of price collusion. Authorities allege the firms coordinated to hike fuel prices by <strong>30\u201340 won per liter<\/strong> despite holding sufficient crude reserves, with the total scale of the collusion estimated at <strong>26 trillion won<\/strong>.<\/p>\n<p>In the commodities space, <strong>Shanghai tin futures<\/strong> surged over <strong>4%<\/strong>, reaching <strong>41,436 yuan<\/strong> per metric ton. This move reflects broader volatility in industrial metals as markets weigh uneven economic recovery signals from China against a weakening US dollar.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Dollar hits two-week lows as June non-farm payrolls grew by only 57,000, sharply missing expectations and cooling 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