{"id":64803,"date":"2026-07-14T21:08:16","date_gmt":"2026-07-15T01:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-as-soft-us-inflation-data-eases-rate-fears\/64803\/"},"modified":"2026-07-14T21:08:16","modified_gmt":"2026-07-15T01:08:16","slug":"asia-markets-rally-as-soft-us-inflation-data-eases-rate-fears","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-as-soft-us-inflation-data-eases-rate-fears\/64803\/","title":{"rendered":"Asia Markets Rally as Soft US Inflation Data Eases Rate Fears"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Asia-Pacific equities surged<\/strong> following a surprise decline in <strong>US June CPI<\/strong>, which has led markets to price in an <strong>83.4% probability<\/strong> that the Federal Reserve will pause rate hikes in July.<\/li>\n<li><strong>Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>)<\/strong> reported its highest second-quarter iron ore shipments since 2020 and significantly <strong>slashed its 2026 copper cost guidance<\/strong> to 30-50 cents per pound.<\/li>\n<li><strong>President Trump scrapped a proposed 20% fee<\/strong> on cargo transiting the <strong>Strait of Hormuz<\/strong>, opting instead for &quot;massive&quot; investment deals with Gulf states, though a naval blockade of Iran remains in effect.<\/li>\n<li><strong>China CITIC Bank International<\/strong> is tapping debt markets with dual-currency perpetual bonds, targeting yields of <strong>2.90% for offshore yuan<\/strong> and <strong>5.45% for US dollars<\/strong>.<\/li>\n<li><strong>ASML (<a href=\"\/stock\/ASML\">ASML<\/a>)<\/strong> is under increased scrutiny as a new report warns of Chinese strategic targeting of Dutch tech sectors, coinciding with proposed US legislation to tighten export controls.<\/li>\n<\/ul>\n<h2>Markets React to Cooling US Inflation<\/h2>\n<p>Global investor sentiment shifted positively as <strong>US inflation data<\/strong> for June came in weaker than expected, effectively removing the threat of a July interest rate hike. The <strong>Nasdaq Composite<\/strong> led gains on Wall Street, rising <strong>0.90%<\/strong>, while the <strong>MSCI Asia Pacific Index<\/strong> climbed <strong>1.2%<\/strong> in early Wednesday trading. <em>The cooling price pressures have provided much-needed relief to risk assets, despite ongoing volatility in the energy sector.<\/em><\/p>\n<p>In the currency and bond markets, <strong>Japanese Government Bonds (JGBs)<\/strong> saw mixed trading, largely tracking gains in <strong>U.S. Treasurys<\/strong> as yields tumbled. The <strong>U.S. Dollar Index<\/strong> experienced its worst day in two weeks, while <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> remained flat near <strong>$4,050 per ounce<\/strong>, balanced by rising <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> and a weaker greenback.<\/p>\n<h2>Rio Tinto Boosts Shipments, Lowers Costs<\/h2>\n<p>Mining giant Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) delivered a robust second-quarter production report, shipping <strong>85.3 million metric tons<\/strong> of iron ore from its Pilbara operations, a <strong>7% year-on-year increase<\/strong>. The company notably reduced its <strong>2026 C1 net unit cost guidance<\/strong> for copper by nearly half, citing higher gold by-product prices and improved productivity. <em>This operational efficiency comes as Rio Tinto continues to advance its Simandou iron ore project in Guinea, which remains on track for its first shipment in late 2025.<\/em><\/p>\n<h2>Geopolitical Shifts in the Middle East and Asia<\/h2>\n<p><strong>President Trump<\/strong> abruptly reversed a proposal to levy a <strong>20% &quot;reimbursement fee&quot;<\/strong> on ships in the <strong>Strait of Hormuz<\/strong> just 24 hours after its announcement. The administration will instead pursue trade and investment deals with Gulf nations, though the U.S. military has resumed a <strong>naval blockade<\/strong> of Iranian ports following a third night of strikes.<\/p>\n<p>In Southeast Asia, <strong>Malaysia<\/strong> is set to receive its first <strong>Littoral Combat Ship (LCS)<\/strong> in December, though the vessel will lack its primary <strong>anti-ship missile system<\/strong> due to a revoked export license from Norway. Meanwhile, <strong>China<\/strong> has introduced a new strategy to explore commercial opportunities for over <strong>11,000 uninhabited islands<\/strong>, a move seen as a long-term effort to strengthen maritime power and secure natural resources.<\/p>\n<h2>Corporate and Tech Developments<\/h2>\n<p><strong>eBay (<a href=\"\/stock\/EBAY\">EBAY<\/a>)<\/strong> users reported widespread technical issues on Wednesday, with a spike in outages documented by Downdetector. In the financial sector, <strong>China CITIC Bank International<\/strong> is marketing offshore yuan-denominated perpetual bonds at <strong>2.90%<\/strong> and U.S. dollar perpetual bonds at <strong>5.45%<\/strong> to replenish its capital buffers.<\/p>\n<p>In the semiconductor space, <strong>ASML (<a href=\"\/stock\/ASML\">ASML<\/a>)<\/strong> remains a focal point of trade tensions. A new report suggests China is aggressively targeting the Dutch tech sector to circumvent <strong>EUV lithography<\/strong> export bans. This comes as <strong>U.S. lawmakers<\/strong> propose new rules to force allies to align more closely with Washington&#39;s restrictive chip policies ahead of ASML&#39;s quarterly earnings report.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Asia-Pacific equities surged following a surprise decline in US June CPI, which has led markets to price in 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