Hanwha Ocean sold roughly $2bn in the USD/KRW forward market on Friday, sources said; the company did not comment. The report coincided with the won strengthening about 0.6% to 1,500 per USD. The intervention occurred as Korean policymakers seek to stem won weakness and amid market expectations that SK Hynix’s planned US ADR issuance will slow offshore sales of Korean equities and reduce capital inflows. South Korea’s deputy finance minister said he expects local-currency supply-demand conditions to shift by H2 2026 and predicted exporters’ dollar holdings will generate inflows via FX forwards.

Shanghai Composite fell more than 1%; Shenzhen Component declined 2.28%; ChiNext dropped 4.37%.

The Shanghai Composite Index fell by more than 1%, the Shenzhen Component Index fell by 2.28%, and the ChiNext Index fell by 4.37%.

US Dollar: 1. Fed's Logan: Strong markets must balance leverage. 2. US federal deficit for the first nine months of fiscal year 2026 is approximately $1.4 trillion. 3. Anthropic appoints former Fed Chairman Bernanke as a member of its Oversight Trust Committee. 4. Fed Chairman Warsh assembles an external expert team; leaders of five major reform working groups have been appointed. 5. Investment Company Institute (ICI): US money market fund assets rose to a record high of $7.953 trillion. 6. Fed's Williams: Inflation remains "too high." Investment in artificial intelligence is one factor driving inflation. The impact of tariffs on inflation is nearing its peak. 7. New York Fed Open Market Account Manager Perry stated that reserve management purchases do not have a predetermined path and will remain flexible. Euro: 1. The Bank of France revised its second-quarter economic growth forecast to 0.2%, previously expecting zero growth. 2. ECB President Lagarde: Will not run for French president, but will continue to advocate for Europe. 3. ECB Meeting Minutes: The energy shock is a factor that cannot be ignored. Overall inflation will rise further this summer and remain well above the target level in the first half of 2027. Japanese Yen: 5. Chief Cabinet Secretary Minoru Kihara: Long-term interest rates are determined by the market based on various factors. The government is paying close attention to the market with a very high sense of urgency. 6. Japanese Minister of Economy, Trade and Industry Minoru Shirou: The government will not communicate its preferences regarding the timing, pace, and direction of policy adjustments to the Bank of Japan in advance. 7. Japanese Finance Minister Satsuki Katayama: Interest rates are expected to rise gradually; GPIF and other pension funds are encouraged to increase their investments in Japanese financial assets. 8. Spokesperson for the Government Pension Investment Fund of Japan (GPIF): We are aware of Finance Minister Satsuki Katayama's remarks but declined to comment. 9. Katayama's remarks spurred a continued rise in the yen, with USD/JPY briefly hitting a daily low of 161.28, a drop of 0.67%; the yields on Japanese 10-year and 20-year government bonds both fell by 10 basis points during the day. South Korean Won: 1. Reuters survey: Short bets on the South Korean won have eased, but remain high. 2. Sources say South Korean shipbuilder Hanwha Marine sold approximately $2 billion in the USD/KRW forward market on Friday. Hanwha Marine has not yet commented. 3. Korea Exchange and Foreign Exchange Administration: The USD/KRW market remains inconsistent with economic fundamentals. With extended trading hours in the USD/KRW market, the room for maneuver in the foreign exchange market will further expand. Other: 1. Polish Central Bank Governor: I think there is a high probability of an interest rate cut this year. 2. Bank of England Chief Economist Peale: Interest rates will need to be raised in the coming year. 3. Central Bank of Malaysia kept its benchmark interest rate unchanged at 2.75%, expecting overall inflation to remain under control in 2026. 4. Reuters survey: Short bets on the Indonesian rupiah have eased slightly, but remain the highest in the region. The renminbi was the only Asian currency to receive bullish bets in this survey.

China's Sci-Tech Innovation Board 50 Index fell more than 5%. Component moves: Jinghe Integration down over 16%, China Resources Microelectronics down over 14%, Cambricon Technologies down about 7%.

The STAR Market 50 Index fell by more than 5%. Among its constituent stocks, Jinghe Integrated Circuits fell by more than 16%, CR Microelectronics fell by more than 14%, and Cambricon fell by more than 7%.