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Key Takeaways A single statement from Nvidia "our road map is intact" helped restore confidence across global AI stocks. Technology shares rebounded , with the Nasdaq 100 rising 1.3% as investors viewed Nvidia's comments as reassurance that AI spending remains on track. The AI investment story is shifting from valuation concerns to earnings sustainability. Investors are closely watching upcoming earnings from Samsung and AI infrastructure companies  for confirmation that demand remains strong. The next phase of the AI rally will depend less on hype and more on continued capital spending and profit growth. Market Insight Sometimes, a single sentence can move billions of dollars. That was exactly what happened after  Nvidia  reassured investors that  "our road map is intact,"  responding to concerns over reports of delays involving AI server deployments. The comment quickly eased fears that the AI infrastructure boom might be slowing. Technology stocks rebounded a...

 Japanese Finance Minister Satsuki Katayama said the government is closely monitoring financial markets as the yield on 10-year Japanese government bonds (JGBs) hovers near  2% , a level last seen almost two decades ago. “We are monitoring market trends very closely,” Katayama told reporters on Tuesday, adding that the government would manage JGB issuance “appropriately through close communication with the market.” She declined to comment on whether yields at 2% were a concern. Japan’s benchmark yield reached its highest level since 2007 on Monday amid growing worries about the country’s fiscal trajectory and expectations that the  Bank of Japan (BOJ)  will continue raising interest rates. Fiscal Concerns Intensify Investor unease has been heightened by the government’s decision to pull back from its long-standing goal of balancing the budget after debt servicing. Prime Minister Sanae Takaichi’s latest economic package — the largest since pandemic-era stimulus — incl...

 Key Takeaway The Trump administration’s largest-ever worksite raid—detaining  475 workers at Hyundai’s EV battery plant in Georgia —has sparked diplomatic tensions with South Korea. About  300 South Korean workers will be flown home this week , while Washington signals more immigration crackdowns ahead. What Happened The Raid:  U.S. federal agents raided Hyundai’s $4.3B car battery plant in Ellabell, Georgia, arresting  475 workers , including  300 South Koreans , over alleged illegal employment practices. Scale:  Officials called it the  biggest single-site enforcement operation  in DHS history, using armored vehicles in the sweep. Aftermath:  South Korea expressed regret, criticizing the public footage of shackled workers. A chartered flight will bring the detained Koreans home once paperwork clears, likely by  Wednesday . Trump’s Stance Tough Talk:  Border czar Tom Homan vowed more workplace raids, saying firms exploit undo...

  Key Highlights: Dollar Weakness:  USD hits two-week low as traders price in September Fed rate cut Rate Cut Odds:  100% chance priced for September cut; 50bps cut probability rises to 7% from 0% last week Equities:  MSCI Asia ex-Japan near highest since Sep 2021; Nikkei dips after six-day rally above 43,000 Bitcoin Surge:  Hits all-time high of  US$124,002.49  (+32% YTD) Gold & Oil:  Gold +0.5% to US$3,371; oil recovers after two-month low Market Moves: Asian stocks paused after a strong rally, with Japan, Korea, and Taiwan slightly lower, while China and Hong Kong gained. Global equity sentiment remains upbeat, following record closes for the S&P 500, Nasdaq, and MSCI All Country World Index. Monetary Policy Outlook: US Treasury Secretary Scott Bessent flagged a possible 50bps cut in September, citing weak labour data from May–July Goldman Sachs projects  three 25bps cuts in 2025  and  two more in 2026 Analysts caution th...

China’s factory activity unexpectedly deteriorated in July, with the official manufacturing PMI dropping to  49.3  from June’s 49.7, marking its weakest reading in three months and signaling a contraction despite the recent tariff truce with the US. The figure missed economists’ median forecast of 49.7, raising fresh concerns over the durability of the country’s economic momentum. Key Data: Manufacturing PMI:  49.3 (vs. 49.7 in June; est. 49.7) Non-Manufacturing PMI:  50.1 (vs. 50.5; est. 50.2) Construction Input Prices:  54.5 (vs. 48.3), driven by rising steel and building material costs. Market Reaction: CSI 300 Index:  Down ~1% after the release. China Government Bonds:  Futures rose as investors sought safety. Drivers Behind the Slowdown: Weak Exports:  Early signs that shipments are slowing despite front-loading ahead of tariffs. Soft Domestic Demand:  Consumer spending remains tepid amid persistent uncertainty. Seasonal & Weather Di...

US stocks continued their  record-setting rally  on July 24, lifted by growing hopes for a  US-EU trade deal  and the recent breakthrough agreement with Japan. The  S&P 500 hit an all-time high , while demand for safe-haven assets like Treasuries and the dollar  slipped . Key Market Drivers: US-EU Trade Talks Progressing Diplomats are working to finalize a deal that would impose a  15% tariff baseline , avoiding the more punitive  30% rate  expected August 1. The Japan deal—featuring billions in investments and tariff relief—has become a  blueprint  for EU negotiations. Strong Market Sentiment Analysts note  low volatility and rising prices —a “don’t short a dull tape” environment, according to Nationwide’s Mark Hackett. Jose Torres (Interactive Brokers) says “animal spirits” are back, as trade progress is  fueling earnings optimism . Mixed Earnings After-Hours Alphabet  beat revenue estimates but flagged  hi...

Japan has renewed calls for China to broaden its outbound investment scheme, highlighting growing demand among mainland investors for exposure to Japanese equities. Satoru Shibata, an adviser to Japan’s Financial Services Agency (FSA) on China matters, voiced the request during a Tokyo forum on Friday. Citing “strong enthusiasm” from Chinese investors, Shibata emphasized the need to  expand the Qualified Domestic Institutional Investor (QDII) programme  — a key channel that enables Chinese firms to invest in overseas assets within government-imposed limits. 🗣️  "Local demand for Japanese shares is strong. A further expansion of the quota is necessary,"  Shibata said, noting that the view was his own and not official policy.  Growing Appetite Meets Limited Access Chinese interest in Japanese equities surged last year as China’s domestic stock markets faced headwinds. A buying frenzy of Japan-focused ETFs by Chinese investors triggered  trading halts and all...

  Key Insights: Global Growth Slowdown : The  Institute of International Finance (IIF)  projects  global GDP growth  to moderate to  2.7% in 2025 , down from  2.9% in 2024 . Emerging markets (EMs) are expected to grow  3.8% , maintaining a higher growth rate than developed economies but still facing challenges. Decline in Capital Flows : Capital flows to EMs are projected to decline by  24%  to  $716 billion  in 2025, compared to  $944 billion this year. China  faces the largest impact, with  $25 billion in outflows  expected for 2025, marking a significant reversal in foreign investment trends. Tariffs and Policy Uncertainty : President-elect  Donald Trump’s tariff threats  are dampening investor sentiment. If proposed  60% tariffs on China  and  10% tariffs globally  are implemented, it could  worsen global trade disruptions , further straining EM capital flows. Regional ...

South Korea’s political turmoil deepened as Han Dong-hoon , leader of the ruling People Power Party (PPP), reversed his stance and called for the suspension of President Yoon Suk Yeol following allegations of misconduct during his martial law declaration. Key Developments Han's Reversal: Han cited credible evidence that Yoon ordered the arrest of key politicians during the martial law declaration. He warned that Yoon’s continued presidency poses significant risks to the country and its people. Impeachment Likelihood: The opposition Democratic Party, which controls Parliament, needs only eight of the PPP’s 108 lawmakers to join its ranks for impeachment to pass. A vote is expected in the coming days. Market Impact: Kospi Index: Fell 1.8% , extending its decline over three days. South Korean Won: Dropped nearly 1% amid increased political uncertainty. Impeachment Process If the motion passes, Yoon would be suspended immediately, and Prime Minister Han Duck-soo would serve as int...

A former accountant at the center of one of Singapore’s largest investment frauds pleaded not guilty on Tuesday to 42 charges, including money laundering, tied to a billion-dollar nickel trading scam. Ng Yu Zhi, 37,  is accused of orchestrating a  US$1.1 billion (RM4.91 billion)  fraudulent scheme through his company,  Envy Group , offering investments in non-existent nickel trades. Prosecutors allege Ng enticed hundreds of clients, including high-profile figures, with promises of  15% average quarterly gains. Extravagant Lifestyle Funded by Fraud While investors poured in their money, Ng allegedly funded a lavish lifestyle, purchasing a  three-story villa in an upscale neighborhood  and a  multi-million-dollar Pagani sportscar. Singapore police described the scam, carried out between 2020 and 2021, as one of the  largest investment frauds  in the city-state’s history. The case has drawn significant attention as Singapore grapples with a...

Key Takeaway: A €350 million Global Shield fund , meant to support climate-hit nations, has delivered only €5.2 million in two years, raising doubts about developed nations' commitment to climate finance. Countries vulnerable to climate disasters are facing years-long delays in accessing promised financial support. The Global Shield, launched in 2022 by the Group of Seven (G7) and led by Germany, was designed to ease the financial burden of climate crises but has so far disbursed a mere fraction of its allocated funds. Progress and Challenges Disbursements: Only €5.2 million has been released, primarily for insurance premiums for Pacific Island nations and Ghana’s sovereign drought insurance . Complex Process: Countries like Pakistan and Madagascar face lengthy analyses and bureaucratic hurdles to unlock funds. Pakistan, devastated by extreme flooding in 2022 , is still awaiting support nearly two years later. Broader Needs: Madagascar, frequently hit by cyclones, requir...

Key Takeaway: Beijing and Shanghai have announced new tax incentives to stimulate home purchases, aiming to revive China's struggling property sector , which has long been a key driver of economic growth. Facing a persistent slowdown in the property market, Beijing and Shanghai have introduced value-added tax exemptions for homeowners selling properties held for over two years. The cities also raised the threshold for deed tax exemptions to properties larger than 140 square meters, up from 90 square meters. These measures follow recent nationwide tax breaks on home and land transactions , reflecting an urgent need to stabilize a market that once contributed nearly a quarter of China’s GDP . Despite these efforts, property stocks remain under pressure , with China’s real estate share index down 1% this week, and Hong Kong-listed mainland developers showing little movement. Analysts caution that broader consumer and investor confidence issues continue to weigh on the market. Add...

Key Takeaway: Japan’s ruling Liberal Democratic Party (LDP) has named Daishiro Yamagiwa as the new chairman of its semiconductor group, tasked with overseeing a ¥10 trillion (RM289.17 billion) initiative to strengthen the country’s chip and AI industries . Former economic revitalization minister Daishiro Yamagiwa has been appointed to lead the LDP’s semiconductor group, succeeding Akira Amari , who lost his seat in last month’s election. This move aligns with Prime Minister Shigeru Ishiba’s bold pledge to secure Japan’s position in the global semiconductor race. Key Developments: Massive Public Investment in Chips The Japanese government plans to allocate over ¥10 trillion to support next-generation semiconductor and AI development. This funding builds on ¥4 trillion previously budgeted, including ¥920 billion for Rapidus Corp , which aims to mass-produce advanced logic chips by 2027 . Funding Breakdown (Draft Plan): ¥2.2 trillion : Transfers from fiscal investment and loan acc...

Key Takeaway: Talabat’s $1.5 billion IPO was fully subscribed within minutes of opening, underscoring strong demand for regional IPOs . Delivery Hero SE’s Middle East unit, Talabat , saw immediate demand for all shares in its Dubai IPO, priced between 1.50 dirhams ($0.41) and 1.60 dirhams , according to deal terms. The IPO, which represents a 15% stake (3.49 billion shares) , values Talabat at $10.2 billion , just below its parent company's $11 billion market cap. Key Highlights: Strong Cornerstone Support Key investors, including the UAE Strategic Investment Fund , Abu Dhabi Pension Fund , and Emirates International Investment Co , have committed $250 million to the IPO as cornerstone investors. Middle East IPO Surge The Talabat IPO follows a record-breaking year for IPOs in the Middle East, where companies have raised approximately $10 billion in 2024. Despite the strong demand, some recent listings, such as Lulu Retail’s $1.7 billion IPO and Oman’s state energy company u...

Key Takeaway: Indonesia is considering reviving its tax amnesty program in 2025 to increase state revenue and broaden the tax base , amid economic challenges. Indonesia’s parliament has added a Tax Amnesty Law revision to its list of priority bills for 2025, signaling that the government may roll out its third tax amnesty as early as next year. This move comes as President Prabowo Subianto’s administration seeks to tackle weakening commodity prices and prepare for massive spending plans . Key Developments: Tax Amnesty Discussions in 2025 Lawmakers will revisit the Tax Amnesty Law during technical discussions with the government, aiming to follow up on previous programs that ended in 2017 and 2022 . According to Mukhamad Misbakhun, chairman of parliament’s finance commission, the revised law could take effect next year. Revenue Challenges Ahead Weaker commodity prices threaten to reduce tax receipts, increasing pressure on the government to find alternative revenue streams . Ind...

Key Takeaway: Nestle aims to revive sluggish sales growth by increasing advertising and marketing efforts , even as it lowers its profitability target. Nestle SA, under new CEO Laurent Freixe, has adjusted its profitability goals and announced a strategic overhaul of its water business to address stagnating sales. Key Updates: Profit Margin Target Adjusted Nestle now targets a trading operating margin of 17% , down from the previous 17.5% to 18.5% goal set by former CEO Mark Schneider. Sales are expected to grow 4% or more in the medium term , compared to Schneider's mid-single-digit prediction for 2025. Water Business Restructure Starting Jan 1, 2025 , Nestle’s water brands, including Maison Perrier and Acqua Panna , will operate as a standalone entity led by Muriel Lienau. This division represents less than 4% of Nestle's revenue and has faced challenges like contamination issues and supply constraints . Nestle will explore potential partnerships for this segment. Incre...

Key Takeaway: Shanghai becomes the first major Chinese city to introduce tax incentives aimed at rejuvenating its struggling property market, signaling a potential wave of similar policies across 'Tier One' cities. Highlights of Shanghai's Tax Incentives Value-Added Tax (VAT) Exemption: Sellers of existing properties are exempt from VAT if they hold the property for over two years . Deed Tax Adjustment: The threshold for levying deed tax has been raised from properties over 90 square meters to those over 140 square meters . Example: For a 10 million yuan apartment , deed tax is reduced to a minimum of 100,000 yuan , down from 300,000 yuan . Elimination of "Ordinary" vs. "Non-Ordinary" Housing Taxation: Properties larger than 144 square meters will no longer face higher taxes. Market Context Property Sector Challenges: The property market slump , once contributing 25% of China's economic activity , continues to weigh on growth. In October, resale ...

Key Takeaway: Goldman Sachs cuts Australia’s GDP forecast to 1.8% for 2025 , citing anticipated spillovers from President-elect Donald Trump’s proposed 60% tariffs on Chinese exports . Goldman’s Revised Outlook Economic Growth: 2025 GDP forecast lowered from 2% to 1.8% , reflecting the impact on exports to China, Australia’s largest trading partner. Tariff Impact: Trump’s protectionist policies are expected to hurt China-Australia trade , creating broader economic headwinds for Australia. Monetary Policy Outlook Interest Rates: Goldman predicts the Reserve Bank of Australia (RBA) will cut rates in February 2025 , reaching a terminal rate of 3.25% by November . Current market consensus expects easing to begin in May , highlighting Goldman’s more dovish stance . Inflation and Spending: Elevated rates (currently 4.35% ) have dampened consumer spending , contributing to the slowdown. Fiscal Stimulus and Election Dynamics Federal Election by May 2025: Voter-friendly policies could provid...