Asia Markets Rise on Mideast Fallout; German Inflation Slows to 2.3%

Lead Asian markets saw gains today, with the S&P/ASX 200 Index rising 0.5% as investors reacted to renewed clashes in the Middle East. Meanwhile, German annual inflation declined to 2.3% in June, aligning with flash estimates. Taiwan's central bank also adjusted its 2026 CPI growth forecast upwards to 1.93% following higher-than-expected second-quarter inflation figures. Session narrative Equity markets in Asia closed higher, with Australia's S&P/ASX 200 Index advancing 0.5%, or 43.5 points, to 8,806. This followed an overnight session on Wall Street where the Nasdaq index rose 1.3% and the S&P 500 gained 0.8%. Commodities saw Brent crude oil futures trading around $76 per barrel, while gold was around $4,113 per ounce, ending a three-day losing streak amid renewed hostilities between the US and Iran. In Europe, Germany's annual inflation rate for June came in at 2.3%, down from 2.6% in May, with monthly consumer prices falling 0.3%. Taiwan's central bank raised its 2026 CPI growth forecast to 1.93% and its core CPI forecast to 1.92%, after second-quarter CPI rose 2.17% year-over-year. The Reserve Bank of Australia is now expected to begin rate cuts earlier, in August 2027, according to Westpac, though a rate hike in August 2026 remains likely. In corporate news, Bravura Solutions raised its fiscal 2026 cash EBITDA guidance, and Tata Consultancy Services reported higher fiscal first-quarter earnings despite a shrinking order book. Shenhuo Coal & Power expects a 152% rise in first-half profit, while Yunnan Energy New Material projects a turnaround. Cross-asset check S&P 500 futures are down 0.23%, Nasdaq futures are down 0.52%, and Dow futures are up 0.03%. The US 10-year yield is down 0.66% at 4.54%. The US Dollar Index is down 0.18% at 100.73. WTI crude is down 0.35% at $71.83, and Brent crude is down 0.38% at $76.01. Gold is down 0.33% at $4127, and silver is down 0.11% at $60.68. Bitcoin is up 1.08% at $63867.95. Themes & continuing stories Inflationary pressures continue to be a key theme, with Germany's inflation slowing but Taiwan's central bank raising its forecast. Central bank policy remains in focus, with the RBA potentially starting rate cuts earlier than expected, yet a near-term hike is still on the table. Geopolitical tensions in the Middle East are impacting commodity markets, with Brent crude trading around $76 per barrel and gold seeing renewed interest. Corporate earnings reports are providing mixed signals, with some companies raising guidance while others face shrinking order books or project turnarounds. What’s ahead The Reserve Bank of Australia is likely to hike rates in August, contingent on the release of June quarter consumer price index data. Taiwan's July inflation could temporarily surpass 2% due to the impact of Typhoon Bavi on fruit and vegetable prices. Macquarie Group faces a climate-related shareholder resolution at its annual general meeting on July 23, focusing on its net-zero commitment and fossil fuel financing.