In corporate developments, Wipro posted quarterly earnings that fell short of analyst estimates, while Jio Financial Services more than doubled its profit for the June quarter. By contrast, tyre manufacturer CEAT and dairy producer Heritage Foods both disappointed on earnings.

Global signals were mixed, with Brent crude trading near $85 per barrel amid renewed geopolitical tensions in the Middle East. Among individual stocks, notable gainers included Laser Power (10.0%), Jio Financial (4.1%), 360 One (3.8%), and Billionbrains (2.7%). On a weekly basis, the benchmark index is up a modest 0.28% so far.

Mining and quarrying rebounded sharply, growing 10.2% after contracting 2.1% in Q1, mainly supported by higher natural gas output. Manufacturing growth also picked up, rising 7.5% compared with 5.9% previously, underpinned by stronger production of electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products.

Growth remained robust but moderated slightly in the services sector (5.4% vs. 5.6%) and construction (6.6% vs. 7.0%). By contrast, agriculture contracted 3.7% after expanding 2.6% in Q1, reflecting weaker production in the oil palm and fishing subsectors.

For the first half of 2026, Malaysia’s economy grew 5.6%, up from 4.5% in the same period a year earlier.

Against this backdrop, investors are increasingly worried that central banks may keep interest rates elevated for longer than previously expected, or even raise them further, to contain price pressures.

Nonetheless, copper prices found some support from growing supply risks. A powerful storm in Chile, the world’s largest copper producer, caused extensive power outages and significant infrastructure damage. Adding to the supply strain, Antofagasta reported that its first-half copper output fell 9.5% to 285,000 tonnes, largely due to weaker production at two key mines. BHP also warned that its Chilean copper production is likely to decline next year, while the IEA highlighted tightening supplies of sulphuric acid, a critical input for certain copper mining and processing operations.

At the same time, the government is preparing measures to stabilise food prices amid El Niño-related supply risks, following a rise in June headline inflation toward the upper end of Bank Indonesia’s target range. For the week, the rupiah was on track for a modest 0.2% gain, recovering some ground after earlier weakness, helped by S&P’s decision to reaffirm Indonesia’s investment-grade sovereign rating with a stable outlook.

Upside for the currency, however, was limited by higher global oil prices and reports of fuel shortages in Sumatra. Market participants also remained cautious ahead of Bank Indonesia’s policy meeting next week, after the central bank delivered a cumulative 100 basis points of rate hikes in May and June.

Externally, a softer U.S. dollar lent additional support. The dollar index was little changed on Friday but headed for a weekly decline, as cooler U.S. inflation data tempered expectations of further interest rate increases by the Federal Reserve.

The broader index fell to its lowest level since June 10, dragged down primarily by electronic technology shares, which sank 5.0%. TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, slid 3.9%, while MediaTek plunged 6.4%. Delta Electronics and Hon Hai Precision Industry also lost ground, declining 5.3% and 2.3%, respectively.

Sentiment was further dampened by rising oil prices, which reignited inflation concerns and reinforced expectations of additional interest rate hikes. Investors were also cautious ahead of a raft of upcoming data, including June industrial production and retail sales figures due next week.

For the week, the TAIEX is on track for a 3.6% loss, pressured by higher oil prices and a global selloff in technology stocks.

Even so, forecasts calling for cooler temperatures and increased rainfall in key growing regions brightened production prospects, encouraging investors to take profits following the latest rally. Elsewhere, crude oil prices held firm amid intensifying conflict in the Middle East and the presence of a US naval blockade in the Strait of Hormuz.

The benchmark yield is also hovering near a 30-year high, reflecting mounting concerns over Japan’s fiscal expansion plans and persistent inflationary pressures. The government recently released a draft roadmap calling for more than ¥370 trillion in combined public and private investment through fiscal 2040, spanning 17 strategic sectors prioritized by the Takaichi administration.

At the same time, a recent report indicated that Japan has no immediate plans to revise the asset allocation of its state pension funds, tempering expectations for near-term support for domestic financial markets.

At the same time, weather conditions across key US growing areas turned more favorable after a spell of intense heat, with forecasts calling for cooler temperatures and increased rainfall, bolstering yield prospects. Firmer crude oil prices lent additional support to corn, amid escalating tensions in the Middle East and a US naval blockade in the Strait of Hormuz, which raised broader energy market concerns.

Still, the downside in corn prices was limited by expectations of tighter US supplies, after the USDA trimmed its 2025/26 ending stocks projection in the July WASDE report.

Market participants are now awaiting intervention data due later this month to determine whether Japanese authorities were behind the sharp but short-lived yen rallies seen in recent weeks. The currency also remained under pressure from this week’s steep rise in oil prices, fueled by escalating tensions between the US and Iran that have effectively unraveled the interim peace agreement.

Given Japan’s heavy reliance on energy imports from the Middle East, the country remains especially exposed to potential disruptions in regional energy supplies.

On the domestic front, worries over external debt resurfaced after the total reached USD 444 billion in May, although authorities reiterated that the debt position remains manageable. Markets also turned cautious ahead of Bank Indonesia’s policy meeting next week, with attention on whether the central bank will maintain its tightening bias after delivering a cumulative 100 bp in rate hikes over May–June.

Sector-wise, basic materials, healthcare, and industrials dragged the index lower. Notable decliners included Hartadinata Abadi (-3.3%), Aneka Tambang (-2.3%), AKR Corporindo (-1.5%), and Alamtri Minerals (-1.0%).

Even so, the benchmark is still on track for a second consecutive weekly gain, up about 3%, supported by robust Q2 foreign direct investment, which grew at its fastest pace since Q4 2024, largely driven by downstream mineral projects. Meanwhile, the government is preparing stronger measures to stabilize food prices and contain inflation amid El Niño–related supply risks.

EU gas prices have jumped more than 14% this week and over 27% so far in July, reversing an earlier decline of more than 14% in the second quarter, as the renewed conflict complicates Europe’s efforts to rebuild gas inventories ahead of winter. Supply concerns deepened further after Qatar, the Middle East’s largest LNG exporter, suspended plans to expand production following an attack on one of its tankers near the Strait of Hormuz.

The renewed conflict drove oil prices sharply higher, reinforcing expectations that ongoing disruptions to energy supplies could fuel inflationary pressures. At the same time, softer-than-expected US consumer and producer price data led markets to scale back the probability of a near-term Federal Reserve rate hike, lending support to non-yielding assets such as platinum.

Additional backing for the platinum market comes from a constrained supply outlook. The World Platinum Investment Council continues to project a fourth consecutive market deficit in 2026, with demand forecast to exceed supply and above-ground inventories expected to remain near historically low levels.

The STAR 50 Index’s fear/greed gauge, which tracks selling pressure relative to buying activity, slid to its lowest reading since April 2022. Investors grew wary of stretched valuations after a blockbuster quarter and a pullback in previously high-flying memory-chip stocks, further souring the mood.

At the same time, markets focused on the World AI Conference in Shanghai, where President Xi Jinping is expected to deliver a keynote speech underscoring China’s push for technological self-reliance and a greater role in shaping global AI standards.

Technology shares remained under sustained pressure, led by declines in Cambricon Technologies (-3%), Hygon Information Technology (-2.6%), Zhongji Innolight (-7.7%), Eoptolink Technology (-7.3%) and NAURA Technology (-2.3%).

The setback followed overnight losses on Wall Street, where technology shares pulled back amid rising skepticism over whether heavy AI-related capital spending can deliver returns sufficient to support current market valuations. Risk appetite was further curbed by higher oil prices, which stoked inflation worries and reinforced expectations that central banks will stay cautious about loosening monetary policy.

Many investors opted to remain on the sidelines ahead of upcoming US economic data releases and corporate earnings reports. Notable decliners on the day included Knowledge Atlas (-14.9%), Tencent (-1.0%), SMIC (-4.1%), Kingboard Laminates (-5.8%), and Lenovo (-2.3%).

Refining trends have further tightened gasoline supplies. Both US and international refiners have scaled back gasoline production in favor of higher-margin diesel and jet fuel, while robust overseas demand has driven US fuel exports to record levels. According to EIA data, US gasoline inventories fell by 1.5 million barrels in the week ending July 10, leaving stocks roughly 14 million barrels below their five-year seasonal average and at their lowest level for this time of year since 2012. Reflecting this tightness, the US gasoline crack spread has widened to about $59 per barrel, its highest since June 2022.

The US conducted multiple strikes against Iran this week, prompting Tehran to retaliate by targeting US bases in neighboring countries. These developments pushed oil prices higher and reignited inflation worries.

Earlier in the week, data showed that US consumer prices rose less than expected in June, while producer prices unexpectedly declined. As a result, markets have largely ruled out the possibility of a Federal Reserve rate hike this month, though expectations remain split on whether policymakers will move to raise rates in September.

Earlier this week, RBNZ Chief Economist Paul Conway cautioned that renewed conflict in the Middle East could rekindle inflationary pressures, potentially forcing the central bank to tighten policy further following last week’s first rate increase in more than three years.

At the same time, the US dollar rebounded from a near one-month low after fresh data underscored the continued resilience of the US economy, limiting additional upside in the kiwi. For the week, the New Zealand dollar advanced more than 1%, recording its third consecutive weekly gain.

Earlier in the week, data showed US consumer prices rose less than anticipated in June, while producer prices unexpectedly declined. Retail sales matched forecasts, with lower gasoline prices dragging down fuel station receipts, even as spending at auto dealers and online retailers stayed robust. At the same time, initial jobless claims fell to a two-month low of 208,000. Markets have now largely priced out the likelihood of a Fed rate hike this month, though views remain divided over the chances of a move in September.

Domestically, traders turned cautious ahead of next week’s June labour market report, after May delivered the strongest jobs growth in five months, even as the unemployment rate remained near a four-year high.

Losses were partly limited by optimism that China, Australia’s largest trading partner, may announce additional stimulus at the late-July Politburo meeting to counter weaker-than-expected Q2 GDP growth.

Sector-wise, electronic technology, non-energy minerals, and manufacturing led the decline, while energy minerals, retail trade, and process industries provided some support. Among major names, BHP Group dropped 2.6%, with notable falls also in Northern Star Resources (-3.7%), Evolution Mining (-4.4%), and South32 (-3.2%).

For the week, the index is on track for a 0.2% loss, adding to the previous week’s decline.

Electronics remained the key driver, with exports soaring 105.1% in June, up from 94.8% in May, underpinned by strong AI-related demand. The increase in electronic exports was led by disk media products (170.9%), integrated circuits (ICs) (115.4%), and personal computers (PCs) (95.8%).

In contrast, non-electronic exports contracted 2.9% in June, reversing a 17.7% gain in May. The decline was mainly due to weaker shipments of non-monetary gold (-49.0%), petrochemicals (-27.9%), and food preparations (-38.6%).

By destination, exports increased to Taiwan (123.3%), South Korea (62.9%), Thailand (41.5%), the United States (36.7%), China (7.4%), and the European Union (20.8%).

On a month-on-month seasonally adjusted basis, NODX fell 8.9% in June, reversing a 7.7% rise in May and recording the first monthly decline in six months. For the first half of 2026, NODX grew 18.6%.