📈 Asian Stocks Near Record Quarter; Strong Dollar Sinks Yen & Gold

Asian markets braced for the close of a historic quarter on Tuesday, marked by massive tech-driven gains, an aggressive U.S. dollar rally, and notable investor portfolio rebalancing. • Market Benchmarks: South Korea's KOSPI slipped 1% on Tuesday but is on track for a staggering 65% rise for Q2, more than doubling year-to-date. Taiwan's benchmark index is set to surge over 40% this quarter, driven by semiconductors and high-tech sectors. Japan's Nikkei remained steady, heading toward a record quarterly gain of over 36%. Hong Kong's Hang Seng bucked the regional trend, lagging with a 7.5% quarterly decline. • Currency & Commodities: The U.S. dollar index rose 1.3% this quarter as interest rate outlooks shifted from cuts to hikes, driven by resilient U.S. economic strength. The Japanese yen plunged to a four-decade low of 162.41 per dollar, prompting intervention warnings from authorities. Gold recorded its sharpest quarterly drop in over a decade due to the resurgent dollar. Global oil prices stabilized, with Brent crude tracking at pre-war levels of US$ 72.49 a barrel. • Investor Flows & Diversification: Strong tech performance triggered heavy profit-taking rather than new institutional inflows. A net US$ 17.3 Bn left South Korean equities this year as foreign investors rebalanced portfolios to mitigate heavy tech exposure, looking toward alternative themes like defense and renewables. Meanwhile, China's manufacturing expanded in June, supported by high-tech exports.