- RBA dep Gov Hauser says inflation is too high, monetary policy needs to bring it down
- China eases limits on Nvidia H200 chips as AI race escalates, FT reports
- Trump pauses 50% Canada tariffs for ‘three day period’
- UAE-Iran trade halt more significant than US embargo, ex-official says
- Australia Q2 2026 Wage price Index +0.8% q/q (expected +0.8%)
- PBOC sets USD/ CNY mid-point today at 6.7854 (vs. estimate at 6.7421)
- Update: Oil extends gains to fourth day as Hormuz fighting drags on
- South Korea stock market halt called already as Kospi plunges
- Japan June Machine Orders +16.9% y/y (expected +10.8%)
- Canada, US race against midnight tariff deadline as talks continue
- Fund managers pile into stocks, BofA finds. Fund manager bullishness near four-year high
- New Zealand Q2 2026 producer price index rises
- Iraq backs new oil export routes to bypass Hormuz Gulf bottleneck
- Preview: What to watch as July FOMC minutes drop Wednesday
- Mizuho sees BOJ hiking rates faster as weak yen fuels inflation risk
- Iran rejects UAE missile accusation, warns against unfounded claims
- Oil catch up – prices hit three-week high as Iran vows offensive stance, denies UAE missile claim
- Oil: Private survey of inventory shows headline crude oil draw and huge diesel draw
- UAE halts all trade and financial dealings with Iran, MoFA official says
- Trump is weighing whether to grant Canada a tariff reprieve – Politico
- investingLive Americas FX news wrap: US data mixed as Iran headlines and Canada tariffs dominate
Summary:
- UAE formally halted all trade, commercial and financial transactions with Iran; MoFA’s Afra Al Hameli confirmed the move amid regional escalations
- Iran’s foreign ministry rejected UAE accusations that it fired missiles at the country, calling the claims unfounded
- France will expel two Iranian diplomats after French embassy staff in Tehran were detained and allegedly intimidated in July
- Oil extended gains into a fourth session in Asia trade on continued Gulf supply uncertainty
- South Korea’s KOSPI opened down 5%, widening to 6% and triggering a five-minute sidecar halt on program selling; Samsung Electronics and SK Hynix both fell around 7%
- Japan’s Nikkei fell more than 3%, with Tokyo Electron down 4% and Kioxia down 9%; China also opened lower
- RBA Deputy Governor Andrew Hauser said inflation remains too high and further rate hikes are possible if it doesn’t ease, though he does not see a recession, only a slowdown
- Japan’s core machinery orders jumped 9.7% month-on-month in June, well above forecasts and the fastest pace since February; annual orders rose 16.9%
- Australian wages grew 0.8% in the June quarter as expected, with the annual pace holding at 3.2%
- The US delayed 50% tariffs on Canadian goods by three days after talks in Washington; Carney says “substantial progress” made
- Beijing is allowing small H200 chip shipments to Chinese tech firms, with ByteDance and Tencent each receiving around 10,000 units, per the FT
- Joint US-South Korea military drills are set to be cut by about half following a Trump order, South Korean media reported
Asian markets sold off sharply on Wednesday as escalating tension between the UAE and Iran, together with a fresh diplomatic rupture involving France, added to an already elevated risk backdrop across the region. the drop followed falls on Wall Street.
The UAE has formally halted all trade, commercial and financial transactions with Iran, according to Ministry of Foreign Affairs Director of Strategic Communications Afra Al Hameli. The move follows the UAE’s earlier allegation that Iran launched missiles against the country, an accusation Iran’s foreign ministry has firmly rejected, describing the claims as unfounded and pointing to what it characterised as false flag operations attributed to the US and Israel. Analysts have separately described the trade suspension as a significant blow to Iran given the scale of Dubai’s role in Iranian import markets and its function as a financial channel.
France added a further layer to the diplomatic strain, announcing it will expel two Iranian diplomats in the coming days after two French embassy staff in Tehran were detained and allegedly intimidated in July.
Against that backdrop, oil extended its gains into a fourth consecutive session in Asian trade, continuing a run driven by ongoing uncertainty over the operational status of the Strait of Hormuz.
Equity markets bore the brunt of the risk-off move. South Korea’s KOSPI index opened down 5%, with the decline widening to 6% within minutes, triggering the exchange’s sidecar mechanism and suspending program-driven selling for five minutes. Samsung Electronics and SK Hynix each fell by around 7%. Japan’s Nikkei 225 dropped more than 3%, with Tokyo Electron down 4% and Kioxia down 9%. Chinese equities also opened lower.
On monetary policy, Reserve Bank of Australia Deputy Governor Andrew Hauser reiterated that inflation remains too high and that monetary policy needs to continue reducing demand in the economy. He said further rate hikes remain possible if inflation fails to ease, while noting the Board is not forecasting a recession, only a slowdown, and flagged upside inflation risks as an ongoing concern.
On data, Japan’s core machinery orders, which exclude volatile items such as ships and electric utilities, jumped 9.7% month-on-month in June, reversing a 12.4% drop the prior month and beating forecasts for a 7.8% rise. It marked the third increase this year and the fastest pace since February, pointing to a broad-based recovery in business investment. On an annual basis, orders rose 16.9%, swinging from a 1.9% decline in May and topping estimates for a 10.8% gain, the fastest annual rise in four months. In Australia, wages grew 0.8% in the June quarter, matching expectations, with the annual pace holding at 3.2%.
Elsewhere, the Trump administration agreed to delay planned 50% tariffs on Canadian goods by three days following high-stakes talks in Washington. Canadian Prime Minister Mark Carney said in a brief statement that substantial progress had been made, though he added that important work remains. The Canadian dollar gained a few points on the news.
Separately, Beijing is allowing small shipments of Nvidia’s H200 chips to reach leading Chinese technology firms, with ByteDance and Tencent each receiving around 10,000 processors in recent weeks, according to the Financial Times, as China eases restrictions to help its companies compete in the AI race.
On the security front, scheduled joint US and South Korean military drills are expected to be cut by roughly half, South Korean media reported Wednesday, following an order from President Trump to substantially reduce US participation in the annual exercises.
This article was written by Eamonn Sheridan at investinglive.com.