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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting Asian markets' sensitivity to energy costs, Japanese and South Korean stock indices hit fresh record highs on Friday. This rally was primarily driven by lower oil prices following the reopening of the Strait of Hormuz, which eased geopolitical supply concerns. Meanwhile, the US dollar hovered near a 13-month high following a hawkish shift by the Federal Reserve, maintaining pressure on the Japanese yen according to reports.
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Sign InLower energy prices bolster the outlook for major industrial firms in the region, as energy-importing economies like Japan benefit from reduced production costs. Compared to global peers, the Nikkei index showed remarkable resilience despite currency volatility, while the Kospi benefited from an improved inflation outlook. Per market data, the German CPI holding at 2.6% (as of June 12, 2026) suggests a relative cooling in global inflationary pressures that supports equity risk appetite.
Investors should monitor liquidity levels as dollar strength may prompt BoJ intervention. Looking ahead at the economic calendar, markets await further US consumer sentiment data (Michigan), which previously printed at 48.9, to gauge the Fed's future rate path. Oil price stability remains the primary catalyst for Asian equities in the coming sessions to sustain these record-breaking levels.