Asian Stocks Surge as AI Optimism Returns, but Strong Dollar Weighs on Commodities
Asian markets rallied strongly on June 25 as renewed confidence in the artificial intelligence and semiconductor sectors boosted investor sentiment. Japan’s Nikkei 225 gained more than 2%, while South Korea’s KOSPI surged 5.5% following positive developments from major chipmakers, easing concerns after recent technology-sector volatility. Despite the equity rebound, the US dollar remained the dominant market force, with the Dollar Index hovering near a 13-month high. The stronger greenback pushed USD/JPY close to levels not seen since 1986, increasing speculation about possible intervention by Japanese authorities.
Commodity markets remained under pressure as gold slipped below the key $4,000 mark for the first time in 2026, while silver extended its sharp monthly decline. Crude oil fell to a three-month low amid improving supply expectations, and NZD/USD dropped to a seven-month low. Cryptocurrency markets also struggled, with DOGE and XRP posting weekly losses. Investors are now focused on the upcoming US Core PCE inflation data, which could significantly influence Federal Reserve policy expectations and drive the next major move across global markets.
Key Highlights:
Nikkei +2%, KOSPI +5.5%
Dollar near 13-month high
Gold falls below $4,000
Oil hits 3-month low
Yen nears 1986 lows
Focus shifts to US Core PCE data
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In FX, the spotlight is fixed on USD/JPY at ~161.73, perched a fraction above 161.96 — the line that, once breached, takes the pair to its w
