South Korea inflation hits highest level in more than 2 years, bolstering case for rate hike<\/p>\n
South Korea’s inflation rate in June hit 3.2%, its highest level since December 2023.<\/p>\n
The reading was in line with expectations from Reuters-pollled economists and was also the fourth straight month of accelerating inflation. <\/p>\n
The reading strengthens the case for a rate hike by the Bank of Korea, which will have its next meeting on July 16.<\/p>\n
\u2014 Lim Hui Jie <\/p>\n
South Korea’s Kospi tumbles more than 5% at the open, triggering trading halt<\/p>\n
Asia-Pacific markets traded mostly lower early Thursday, with South Korea’s Kospi leading losses. <\/p>\n
The\u00a0Kospi<\/a>\u00a0dropped 5.36% at the open, prompting the Korean Exchange to temporarily halt trading for five minutes to curb volatility. The small-cap Kosdaq dropped 3.55%. <\/p>\n Japan’s\u00a0Nikkei 225<\/a>\u00a0declined 0.70%, while the Topix inched up 0.13%.<\/p>\n Australia’s benchmark S&P\/ASX 200<\/a> was down 0.59%.<\/p>\n \u2014Justina Lee<\/p>\n Asia-Pacific markets set to open broadly lower, tracking U.S. stocks <\/p>\n Asia-Pacific markets were set to open mostly lower on Thursday, tracking losses on Wall Street as investors took profits in semiconductor stocks.<\/p>\n Japan’s\u00a0Nikkei 225<\/a>\u00a0was poised to decline, with the Chicago futures contract at 69,750 and its Osaka counterpart last trading at 69,610, compared with the index’s previous close of 70,474.96.<\/p>\n Hong Kong’s\u00a0Hang Seng index<\/a>\u00a0was set to open higher after returning from a public holiday. Futures traded at 22,990, compared with the index’s last close of 22,881.02.<\/p>\n In Australia, futures last traded at 8,687, while the\u00a0S&P\/ASX 200<\/a> closed at 8,722.90.<\/p>\n Developments in the Middle East remain in focus, after President\u00a0Donald Trump<\/a> said the talks between the U.S. and Iran in Qatar were progressing well.<\/p>\n “As far as things are going, the denuclearization of Iran is moving along well,” Trump told reporters. “They’ve had very good meetings and we’ll see.”<\/p>\n \u2014 Justina Lee <\/p>\n ‘Mag7’ declines are a healthy pullback, says Wells Fargo<\/p>\n The declines in the “Magnificent Seven” should be treated as a buying opportunity, according to Darrell Cronk, president for Wells Fargo Investment Institute.<\/p>\n “I’d characterize the recent pullback as a healthy reset, not a structural break\u2014but it’s exposing some important shifts in how the market is thinking about Big Tech. AI is moving from excitement to scrutiny.\u00a0 A shift from build at any cost to prove the ROI narrative.\u00a0We remain favorable on the sector despite the recent pullback but would be more selective.”<\/p>\n \u2014 Fred Imbert<\/p>\n Treasury Department unveils Trump Account investment optionsU.S. won\u2019t renew USMCA<\/p>\n The Trump administration has decided not to renew its\u00a0trilateral trade pact<\/a>\u00a0with Canada and Mexico, instead opting to conduct annual reviews of the treaty that President\u00a0Donald Trump<\/a>\u00a0once called “the\u00a0best agreement<\/a>\u00a0we’ve ever made.”<\/p>\n The widely anticipated decision on the United States-Mexico-Canada Agreement, known as USMCA, was revealed Wednesday, the deadline for the three North American trade partners to determine whether they would renew their agreement for another 16-year term.<\/p>\n