Global Market Digest: Fed Hawkishness and AI Rally Diverge
27 August 2026 · Evening
Persistent inflation pressures in the US are increasing bets on a September Federal Reserve rate hike, driving Treasury yields higher.
Simultaneously, the Bank of Korea raised its benchmark rate to 3.00% for the second consecutive time, with the KOSPI closing up 1.53% on strong semiconductor stocks.
Nvidia's optimistic long-term AI demand forecast sparked a pre-market surge, influencing Asian semiconductor stocks.
However, reports of potential expanded US semiconductor tariffs introduce a new variable to the AI rally, creating a divided market focus between rising rates and AI-driven optimism.
Asian markets showed mixed reactions today as central banks in Korea, the Philippines, and Rwanda raised rates to combat inflation.
Global Markets
Detail
S&P 500
Closed at 7,675.70 on August 26.
-0.02%
Nasdaq
Closed at 26,130.20 on August 26.
-0.08%
STOXX 600
Traded at 653.90 as of 19:44 KST on August 27.
-0.38%
Nikkei 225
Closed at 66,131.76 on August 27.
-0.20%
CSI 300
Closed at 4,630.28 on August 27.
+0.86%
KOSPI
Closed at 6,912.37 on August 27.
+1.53%
Hang Seng
Closed at 25,565.74 on August 27.
-0.34%
Dollar Index (DXY)
Closed at 99.23 on August 27.
+0.10%
USD/JPY
Closed at 159.47 on August 27.
+0.11%
EUR/USD
Closed at 1.16 on August 27.
-0.08%
USD/KRW
Closed at 1,381.58 on August 27.
-0.27%
USD/CNY
Closed at 6.72 on August 27.
-0.03%
US 10-Year Yield
Closed at 4.649% on August 26.
+2.6bp
US 2-Year Yield
Closed at 4.209% on August 26.
+3.3bp
Japan 10-Year Yield
Closed at 2.895% on August 27.
+1.0bp
Germany 10-Year Yield
Traded at 3.250% as of 19:44 KST on August 27.
+1.2bp
Korea 10-Year Yield
Closed at 4.252% on August 27.
-2.0bp
US HY Spread
Closed at 270bp on August 25.
+1.0bp
WTI
Closed at 82.40 on August 27.
+0.21%
Gold
Closed at 4,585.38 on August 27.
-0.27%
Copper
Closed at 6.55 on August 27.
-0.78%
VIX
Closed at 15.22 on August 26.
-1.55%
Australia RBA Rate Hike Bets Surge
Core inflation rose 0.5% in July, the highest this year, while household spending increased 1.1% for the third consecutive month, showing consumer resilience despite higher borrowing costs.
+47%
Australia Q2 Private Capital Expenditure Falls
Private capital expenditure in Q2 declined 3.6%, significantly missing market expectations of +0.5%.
-3.6%
Australian Stocks See Worst Drop in Months
The ASX200 fell 1% to 9,038.20, marking its worst decline since June 4, driven by broad selling across financials (-0.7%, ANZ -1.3%), mining, technology, real estate, and consumer staples.
ASX200 -1%
Nvidia Boosts Tech, BOK Hikes Rate
Nvidia shares rose 6% in Frankfurt, with strong revenue growth forecasts driving up European tech indices.
Nvidia +6%
Israel Industrial Production Declines
Israel's industrial production fell 0.5% seasonally adjusted in June, compared to a 5.3% decline in May, according to the statistics bureau.
-0.5%
Canada Excludes US Seafood from Tariffs
Canada has decided to exclude US seafood products from its retaliatory tariffs.
United States
July PCE Fuels Fed Rate Hike SpeculationPCE 3.7%
The Personal Consumption Expenditures (PCE) price index rose 3.7% year-over-year, exceeding market expectations of 3.6% and remaining above the Fed's 2% target for 65 consecutive months.
Three policymakers dissented at the last FOMC meeting, advocating for a September rate hike, and while 94 out of 104 economists predict no hike, the market is pricing in higher odds for September.
A policy philosophy clash within the Fed is evident, with Governor Warsh advocating for a larger market role in rate decisions and reduced Fed communication, while Treasury Secretary Bessent emphasizes government intervention for economic stability.
Nvidia Signals Prolonged AI Boom+6%
Nvidia projected 70% revenue growth for the next fiscal year and reported current quarter revenue exceeding Wall Street estimates, signaling that the AI infrastructure investment cycle will last longer than anticipated.
Nvidia's stock jumped 6% in pre-market trading, restoring investor confidence despite concerns over supply bottlenecks and financial ties with customers.
This outlook drove a three-day rally in Asia-Pacific stock indices, though the European STOXX 600 closed down 0.4% despite strong tech sector performance.
US Considers Expanded Semiconductor Tariffs
The US administration is reportedly considering new tariffs that would extend beyond microchips to a broad range of tech products containing semiconductors, including laptops, gaming consoles, and data center servers.
Commerce Secretary Rutnick favors linking tariff exemptions for foreign companies to their commitment to invest in the United States.
Iran Conflict Continues, Impacts Oil
Six months after US and Israeli airstrikes, Iran has not surrendered, leading to severe disruptions in the Strait of Hormuz and an unclear path to ending the conflict, contrary to initial Trump administration predictions of a four-week resolution.
The US is reportedly shifting its strategy from further military attacks to an economic pressure campaign.
The conflict has impacted oil prices, with Brent crude touching $120 per barrel in April and projected to average in the $90s in 2026, up from $70 in 2025.
Dollar Recovers on Inflation Data, BOJ Signals HikeDXY near 8-day high
The Dollar Index recovered near its highest point since August 19, reflecting the higher-than-expected July PCE data and increased expectations for a September Fed rate hike.
Bank of Japan (BOJ) Deputy Governor Himino mentioned the need for 'timely' rate hikes, leading markets to price in an 86-87% chance of a September BOJ hike, despite no explicit signal.
Gold spot prices rose 0.6% to $4,618/ounce, and cryptocurrencies also gained amid underlying concerns about dollar weakness.
NVIDIA (NVDA)Earnings Focus
Market attention focused on NVIDIA ahead of its earnings release tomorrow.
FactSet consensus projects $2.10 EPS and 97.2% revenue growth.
Options market priced potential stock movement up to $280 billion post-earnings.
Micron (MU)Management Reshuffle
Sumit Sadana transitioned to Senior Advisor to the CEO.
Manish Bhatia was appointed President and COO, and Scott DeBoer as President and CTO.
The management reshuffle is part of a strategy to accelerate growth.
Apple (AAPL)New Mac Models
Unveiled new Mac mini and Mac Studio models featuring M6, M5 Pro, M5 Max, and M5 Ultra chips.
The M6 chip is Apple's first to use a 2nm process technology.
Mac Studio models are scheduled to begin in-store sales on September 22.
AMD (AMD)Analyst Upgrades
Raymond James upgraded AMD's rating.
Other firms raised price targets for Marvell Technology (MRVL) and Palo Alto Networks (PANW).
Mizuho lowered price targets for SanDisk (SNDK), Micron (MU), Lam Research (LRCX), and Applied Materials (AMAT).
Meta Platforms (META)Settlement Talks
Bloomberg reported Meta is in settlement discussions with 29 states regarding youth social media addiction lawsuits.
Instagram head Adam Mosseri testified in a California lawsuit on the same day.
The company also plans to launch its AI agent platform 'Hatch' within weeks.
SpaceX (SPCX)New Launch Site
Announced plans to build 'Starbase Louisiana,' its fourth Starship launch site, in southern Louisiana.
Reports indicate the plan includes a large capital investment.
The new facility aims to enable daily rocket launches, significantly expanding its space operations.
Alphabet (GOOGL)Waymo Expansion
Waymo began autonomous driving test operations in Munich, marking its first step into Europe with a commercialization target by late 2027.
Google Cloud expanded its Gemini Enterprise AI solution to the legal and financial services sectors.
Boeing (BA)$131.2B Contract
Awarded an IDIQ (Indefinite Delivery, Indefinite Quantity) contract by the US Department of Defense.
The contract is valued at up to $131.23 billion for the F-15 'Eaglecrest' program.
This secures a long-term revenue base for Boeing over an 11-year period.
GE Vernova (GEV)JV with LS Electric
Formed a joint venture with LS Electric in Korea for VSC-HVDC (Voltage Source Converter High-Voltage Direct Current) technology.
This partnership aims to expand its transmission infrastructure business.
Abbott (ABT)FDA Approval
Received FDA approval for 'Libre Duo 10-Day,' the world's first wearable device to simultaneously measure ketone and glucose levels.
The device is expected to launch in the US later this year.
Johnson & Johnson (JNJ)FDA Approval
The FDA approved 'Imavib' as a treatment for warm autoimmune hemolytic anemia (WAIHA) in patients aged 12 and older.
This marks the first approved treatment for this specific indication.
Merck (MRK)Positive Trial
Positive interim results emerged from a clinical trial combining Keytruda with a cancer vaccine.
The trial showed a reduction in the risk of melanoma recurrence.
Moderna (MRNA)PT Upgrades
Deutsche Bank and Barclays significantly raised their price targets for Moderna.
Eli Lilly (LLY)Zepbound Data
Real-world data showed Zepbound, Eli Lilly's GLP-1 obesity treatment, is associated with reduced overall healthcare costs in obese adults aged 55 and older.
This demonstrates the drug's clinical and economic value beyond simple weight loss.
Microsoft (MSFT)AI Partnership
Announced a long-term strategic partnership with HUMAIN, a Middle Eastern AI company, to drive AI transformation in Saudi Arabia and neighboring regions.
HUMAIN's ALLAM (Arabic language-based AI model) will be delivered via Microsoft Foundry, accelerating AI adoption with Arabic AI capabilities and customized technical support.
Amazon (AMZN)Canada Growth
Forecasts that parcel delivery volumes in Canada will grow faster than in the United States over the next several years.
JPMorgan Chase (JPM)India Ban
India's Securities and Exchange Board (SEBI) banned JPMorgan's asset management unit from the Indian stock market.
The ban is due to alleged trading manipulation.
This follows increased regulatory scrutiny in India's $6 trillion stock market.
Europe
France Budget Negotiations Deepen Crisis
France faces a deepening budget negotiation crisis amidst spring presidential politics and high fiscal deficits, exacerbated by a hung parliament that has seen two prime ministers fail to pass budget bills in the past two years.
The country holds the highest fiscal deficit within the Eurozone, and the France-Germany bond spread has widened to its highest level since 2024, raising investor concerns.
Bank of England Rate Hike Expectations Drift to 2027
The market is pricing in only a 24.3bp chance of a rate hike by December 17, below the 25bp+ seen for most of August, with a September hike probability below 15%.
A 36bp hike is priced in by February 4 of the following year, suggesting investors expect the next rate increase to occur no earlier than February 2027.
Eurozone Bank Lending Accelerates in JulyCorporate +4.4%
Corporate loans grew 4.4% year-over-year in July (up from 4.0% in June), and household loans grew 3.1% (up from 3.0% in June).
This marks the first monthly data after the European Central Bank (ECB) implemented its first rate hike in three years.
Nordic Economic Indicators Show Weakness
Norway's Q2 mainland GDP grew 0.3% quarter-over-quarter, falling short of Reuters' forecast of 0.4%.
Sweden's July trade surplus plummeted 50% to 1.2 billion Swedish Krona, down from 2.5 billion SEK in the previous month.
UK Young People Not in Work or Education Drops Below 1 Million<1 million
The number of young people aged 16-24 not in work or education fell to 981,000 in Q2 (from 1.011 million in Q1).
However, the proportion of this age group not in work or education remains the highest in Europe since the COVID-19 pandemic.
Germany Consumer Sentiment Improves-26.6
The September consumer sentiment index rose to -26.6, exceeding expectations (Reuters forecast -29.6) and improving from a revised -29.4 in August.
The improvement was driven by better economic outlook and income expectations.
UK July Car Production Falls-11.6%
UK car production in July declined 11.6% year-over-year to 63,655 units, primarily due to weak exports and scheduled maintenance.
Intensified international competition and sluggish export performance were cited as major contributing factors.
France July Producer Prices Rebound+1.1% M/M
French producer prices rose 1.1% month-over-month in July, rebounding from a revised -0.4% in June.
Year-over-year, producer prices increased 3.4% in July, up from a revised 2.8% in June.
Korea
Bank of Korea Hikes Key Rate to 3.00%+0.25%
The Bank of Korea raised its benchmark interest rate by 0.25 percentage points to 3.00%, marking the second consecutive hike.
The decision was driven by persistent upward price pressures and financial stability concerns, with one board member dissenting.
Despite the hike, Korea's 10-year bond yield slightly decreased by 2bp to 4.252%, suggesting the market had largely priced in the increase and aligning with a recent trend of short-term bond strength.
KOSPI Rises on Semiconductor Strength+1.53%
The KOSPI index closed up 1.53%, boosted by strong performance in semiconductor stocks following Nvidia's optimistic long-term demand outlook.
Foreign capital flowed into the market with net buying, and the USD/KRW exchange rate fell 0.27%, indicating a stronger Korean Won.
BOK Raises Key Rate3.00% Policy Rate
The Bank of Korea raised its policy rate by 0.25 percentage points to 3.00%, the highest level since February 2025.
This marks the second consecutive hike, aligning with the expectations of 18 out of 35 economists surveyed.
The decision aims to address persistent inflation and financial stability risks.
BOK Upgrades GDP Outlook2026 GDP 3.3%
The Bank of Korea significantly upgraded its GDP forecasts, raising 2026 GDP from 2.6% to 3.3% and 2027 GDP from 2.1% to 2.9%.
This optimistic revision is driven by improved projections for exports (+9.7%), private investment (+6.8%), and facility investment (+4.7%).
KOSPI Surges+1.53%
The KOSPI benchmark index closed up 1.53% at 6,912.37, extending its winning streak for a third consecutive session.
Semiconductor stocks led the gains, buoyed by an improved demand outlook from Nvidia (NVDA).
Government bond yields declined, reflecting a positive market reassessment of the rate hike.
Won Gains Against DollarUSD/KRW 1,377
The Korean Won strengthened by 0.5%, trading around 1,377 against the US Dollar.
BOK Governor Shin suggested the Won has room for further appreciation, which is expected to help alleviate import costs.
Despite the gains, the current USD/KRW level remains relatively high.
Seoul Property Prices SoarDouble-Digit Growth
Real estate prices in Seoul and surrounding areas saw double-digit increases, prompting BOK Governor Shin to state that monetary policy alone cannot stabilize the market.
He indicated that additional measures would be necessary to address the soaring property values.
China
Crop Damage Raises US Agricultural Import Concerns
Severe heat and heavy rainfall since mid-July in China's major corn, soybean, and cotton producing regions risk worsening crop yields.
This could increase China's demand for US agricultural imports, potentially boosting purchases beyond its existing commitment to buy $17 billion in US farm products (excluding soybeans) annually until 2028, which has seen slow fulfillment.
Chinese Stocks Rise, Led by AI and SemiconductorsCSI300 +0.9%
The CSI300 index, representing China's top 300 blue-chip stocks, rose 0.9%, and the Shanghai Composite Index (SSEC) gained 1.1%, driven by selective strength in technology stocks.
Nvidia's strong revenue outlook signaled expanding demand for AI and semiconductors, with the 5G telecom index climbing 3.8%.
However, Hong Kong's Hang Seng index fell 0.3%, indicating clear regional divergence in market performance.
China Industrial Profits Growth Slows
Growth in China's industrial profits slowed in July, reflecting continued weakness in domestic demand.
Industrial Profits Slow+11.2% YoY
China's industrial profits grew 11.2% year-on-year, a slowdown from June's 15.1% increase.
Weak domestic demand contrasted with robust AI export sectors, indicating an uneven recovery.
Margins and profitability trends showed signs of deterioration.
Hong Kong Home Prices Decline-0.5% in July
Hong Kong home prices fell 0.5% in July, marking the first decline in 16 months.
This adjustment follows a cumulative 12.8% rise since March 2025 lows.
Weakened demand stemmed from stock market adjustments and China's restrictions on outbound investment.
PBOC Injects Liquidity¥503.5B Overnight
The People's Bank of China injected 503.5 billion yuan via overnight reverse repos to meet month-end funding demand.
An additional 103 billion yuan was supplied through 7-day reverse repos at a 1.40% rate.
This move aimed to stabilize month-end funding, with primary dealer demand reported as "fully met."
US-China High-Level TalksXi Visit Imminent
High-level diplomatic exchanges between the US and China intensified, with Foreign Minister Wang Yi meeting Ambassador David Perdue.
Both sides emphasized focusing on positive cooperation while managing differences.
President Xi Jinping's visit to the US in September is anticipated.
Yuan Edges Higher+16 pips
The Chinese Yuan edged higher, closing at 6.7217 against the dollar, up 16 pips from its open of 6.7215.
Investors remained cautious ahead of the Jackson Hole symposium.
Strong US inflation and economic data have raised expectations for further Fed rate hikes, supporting a stronger dollar.
Pernod Ricard (PRNDY) Sales DropOrganic -3.9%
Pernod Ricard reported a 3.9% organic sales decline, missing forecasts, marking its third consecutive year of revenue decrease.
Weak demand in China and the US, alongside tourism disruption from the Middle East conflict, contributed to the downturn.
The company issued conservative guidance, targeting stable revenue in 2027 and growth near the lower end of 3-6% for 2027-29.
Japan
Foreigners Sell Japanese Stocks¥764.1B Net Sell
Foreign investors net sold 764.1 billion yen ($4.8 billion) in Japanese stocks, the largest outflow in 2.5 months.
This sell-off was driven by surging global bond yields, with 10-year yields in the US, Europe, and Japan reaching decade highs.
Technology and growth sectors experienced the most significant selling pressure.
BOJ Official Hints at HikesSep Hike 87%
BOJ Deputy Governor Himino emphasized the need for "timely" rate hikes, noting underlying inflation is near the 2% target and the weak yen poses inflation risks.
He warned that delaying action could necessitate sharper increases later.
A market survey now indicates an 87% probability of a September rate hike.
Yen Weakness PersistsWeak Yen
The USD/JPY pair remained stable in the 159.11-159.49 range, with the yen's weakness persisting despite hawkish comments from the BOJ Deputy Governor.
A former FX diplomat noted that Japan's solo intervention efforts are less effective than coordinated G7 actions.
While a weak yen boosts large corporate profits, it erodes household real income.
Emerging Markets
Philippines Hikes Rates5.0% Policy Rate
The Philippine central bank raised its policy rate by 25 basis points to 5.0%, marking the third consecutive hike.
This preemptive measure aims to cool inflation, particularly amid El Niño concerns.
Despite the hike, the Peso remained weak against the dollar, trading around 61.739.
Rwanda Raises Policy Rate8.75% Policy Rate
Rwanda's central bank increased its policy rate by 50 basis points to 8.75% to combat surging inflation.
Headline inflation hit 14.5% year-on-year in July, up from 13.6% in June, partly due to the Middle East conflict.
The governor stressed that restoring inflation to target is crucial for sustained economic growth.
Thai Exports & Output UpExports +21.6% YoY
Thailand's July exports rose 21.6% year-on-year, surpassing forecasts, while imports increased by 36.7%.
Manufacturing output also grew 0.46% year-on-year, significantly beating expectations.
These figures signal a recovery in domestic demand and production.
Ukraine Grain Exports Down-60% in August
Ukraine's grain exports plummeted by 60% in August compared to the same period in July, with alternative rail and river routes proving insufficient.
A lack of farmer funding could lead to a 5-7 million hectare reduction in the 2027 sowing area, out of a total 20 million hectares, raising concerns about future food supply disruptions.
South Africa PPI Eases5.7% YoY in July
South Africa's producer price inflation slowed to 5.7% year-on-year in July, down from 7.5% in June.
On a monthly basis, PPI fell 1.0%, better than the consensus forecast.
The decline was primarily driven by lower prices in manufacturing and intermediate goods.
Rwanda Borrows in YenFirst Yen Issuance
Rwanda secured its first-ever yen-denominated loan, comprising half of a $190 million 15-year World Bank-backed loan.
Approximately $95 million was raised in Japanese Yen to diversify its currency base.
The funds will support general budget, infrastructure, health, education, and agriculture.
Ukraine Hints at TalksSep Talks Possible
Kyrylo Budanov, a top aide to Ukraine's President, suggested that talks with Russia might resume in September, emphasizing the necessity of US representation.
The timing of peace negotiations is seen as potentially linked to developments in the US-Iran conflict.
Russia Confirms CIA TalksWorking-Level Meeting
Sergei Naryshkin, Director of Russia's SVR foreign intelligence service, confirmed "working-level talks" with CIA Director John Ratcliffe in Moscow.
This meeting is viewed as a potential signal of new mediation efforts by the Trump administration, possibly connected to the Ukraine and Iran issues.
Greece Patriot in SaudiDrone Intercept
A Greek Patriot air defense system, deployed in Saudi Arabia, cooperated with Saudi air defenses to intercept a swarm of drones in the Yanbu region.
This marks the third combat use of the system since the US-Israel conflict with Iran, indicating an expanding role for European allies in Gulf energy defense.
Gulf Stocks GainDiplomacy Hopes
Gulf stock markets rose amid renewed hopes for US-Iran diplomacy, following the Qatari Prime Minister's visit to Tehran.
The market reacted positively to the US strategy of combining enhanced sanctions with diplomatic channels, signaling potential de-escalation.
Russia Launches Major Attack258 Drones
Russia launched a large-scale attack on Ukraine, deploying 258 drones, two Oniks missiles, and multiple ballistic missiles overnight.
Ukraine's air force reported intercepting about 90% of the drones, one Oniks missile, and seven ballistic missiles, with some violating Moldovan airspace, signaling an escalation of conflict intensity.
Kremlin Rejects Asset Use'Illegal' Claim
The Kremlin strongly opposed proposals by some EU countries to use frozen Russian assets to aid Ukraine, labeling such actions as "illegal."
Russia vowed to resist through all legal means, indicating this issue will remain a sharp point of contention, separate from any asset unfreezing negotiations.
Hungary Boosts Pensions4.2x Increase
Hungary plans to significantly increase its minimum old-age pension to 120,000 Forints per month from January 1, 2027, a roughly 4.2-fold rise from the current 28,500 Forints.
This move fulfills an election promise by Prime Minister Peter Magyar's Tisza party, signaling an expansion of social security.
RBI Absorbs Liquidity$65B via FCNR
The Reserve Bank of India absorbed $65 billion in liquidity over three months through foreign currency non-resident (FCNR) deposit swaps.
While initially a temporary measure to support the rupee, it led to excess liquidity.
The bond market anticipates the RBI will deploy long-term tools to manage this surplus and support future rate hikes.
HDFC Bank (HDFCBANK) Falls2.5-Year Low
HDFC Bank shares dropped to a 2.5-year low of 710 rupees, marking a third consecutive day of decline.
The stock is down 28% year-to-date, its worst annual performance in over a decade.
Investor sentiment is weighed down by delays in CEO reappointment, regulatory uncertainty, and ongoing legal issues.
India Short-Term Bonds Strong₹251B Auction
India's short-term government bonds saw strong demand in a 251 billion rupee ($2.51 billion) auction of 91, 182, and 364-day T-bills.
Excess liquidity supported strong bids for shorter maturities, while the 1-year bill's cutoff was sensitive to rising rate expectations, with 1-year OIS up 9 basis points to 5.89%.
Bank of Baroda (BANKBARODA) Funding$400M Additional
Bank of Baroda, India's second-largest state-run bank, secured an additional $400 million through the RBI's discount window, bringing its cumulative funding to over $1 billion.
The bank reissued its 2031 dollar bonds at a yield of 5.3890%.
Asia
Bank of Baroda (BOB)+$1 Billion
Bank of Baroda raised over $1 billion through the central bank's lending window.
This marks the fifth time a borrower and second time a state-owned bank has achieved this milestone.
Indian Rupee (INR)Steady
The rupee is expected to open stable around 95.40-95.44 per dollar, near its previous close of 95.4125.
Lower oil prices and continuous RBI intervention are easing depreciation pressures, offsetting risks from a potential September Fed rate hike.
Traders anticipate the rupee to trade within a short-term equilibrium range of 95.00-95.80.
Indian EquitiesShort-term gain
GIFT Nifty futures indicate a higher open at 24,360.50, up from the previous close of 24,207.75.
Lower oil prices due to progress in Strait of Hormuz negotiations and improved NVIDIA earnings are providing short-term support.
A Reuters poll projects a downgrade in India's equity outlook for the third consecutive quarter, with stocks expected to fall below early-year levels by mid-2027.
A more than 7% decline this year would be the worst in over a decade, as foreign capital accelerates its shift to markets like Japan, Korea, and Taiwan.
HDFC Bank (HDFCBANK)2.5-Year Low
HDFC Bank shares slipped to a 2.5-year low.
The decline is attributed to ongoing legal and leadership challenges within the bank.
India Bond MarketLiquidity Withdrawal
Bond traders anticipate the Reserve Bank of India (RBI) will intensify its liquidity withdrawal efforts.
This move is seen as paving the way for potential future rate hikes.
Surplus liquidity is expected to boost demand for short-end treasury bills, while long-end yields may gradually increase.
Techcombank (TCB)+7%
BNP Paribas and KB Kookmin Bank were reportedly in talks to acquire a 15% stake in Techcombank for $2 billion.
Techcombank was reportedly seeking a valuation approximately double its book value.
BNP Paribas later denied any acquisition plans, but Techcombank shares rose up to 7% on the news, as strategic foreign financial institution stakes are rare in Vietnam.
Vietnam Tech InvestmentTech Focus
Vietnam's Prime Minister urged Chinese investors to shift their focus towards technology-intensive businesses.
Key sectors highlighted include AI, semiconductors, and 5G.
High-level agreements are also being pursued in railway and logistics.
Latin America
Colombia Central BankInflation Target
Colombia's central bank expects inflation to approach its 3% target by mid-2028.
Its technical team revised the 2027 year-end inflation forecast to 4.3%, up from 3.7% in early August.
Colombia has missed its inflation target since 2021, with inflation standing at 6.03% at the end of July, primarily driven by increased domestic demand.
Colombia Fiscal PolicyFiscal Rule
Colombia's Vice Minister of Finance stated that returning to the country's fiscal rule is not feasible in the short term.
This indicates ongoing challenges in managing public finances and adhering to established fiscal guidelines.