Public Markets 3 Hours

Last updated: May 10, 2026, 11:30 PM ET

Asian Equities & Currency Dynamics

South Korean equities received a significant boost as JPMorgan raised its targets for the Kospi index to 10,000, citing the ongoing memory chip boom alongside perceived improvements in corporate governance, while the yen saw bearish positioning unwind following direct intervention by Japanese authorities to cap further depreciation. This risk-on mood across Asia, partly fueled by last Friday’s Wall Street rally, caused the yen to generally weaken against G-10 peers, though intervention tempered short-selling enthusiasm. Meanwhile, the Indian rupee remains under pressure, with Monex Europe forecasting a year-end level of 98 per dollar, which is keeping local equities constrained.

China Markets & Economic Pressures

Chinese economic data revealed that factory inflation accelerated to its fastest pace since the pandemic era, driven by cost shocks stemming from disruptions related to the Iran conflict, even as the currency outlook brightens. Despite inflationary pressures, Goldman Sachs forecasts the yuan is currently more than 20% undervalued against the dollar and anticipates continued strengthening over the next year. This backdrop of geopolitical tension and currency reassessment coincides with Beijing officially confirming a state visit by Donald Trump this week, marking the first US presidential trip in nearly a decade, which occurred despite ongoing friction related to the Middle East. Separately, a major Chinese refiner is reporting substantial platinum demand tied to a new local futures contract, signaling increased physical absorption of the metal domestically.

Private Markets & Fixed Income Shifts

The extended period of high performance for private credit appears to be concluding, with firms reporting declining returns attributed to the Federal Reserve’s rate cuts and a rise in loan defaults, a trend reflected in the recent $61 million loss reported by Apollo’s publicly listed BDC. This cooling in private markets contrasts with potential supply shifts in Australian government debt, where analysts suggest that the upcoming budget may lead to lower bond issuance, potentially causing the Australian yield curve to flatten and narrow its premium relative to U.S. Treasurys. In India, Reliance Industries is reportedly revising its massive Jio Platforms IPO plans, opting to issue entirely new shares rather than selling existing stakes, a move that could position the event as potentially the largest primary issuance in Indian history.

AI Wealth & Political Developments

The fervor surrounding artificial intelligence continues to create outsized wealth, as demonstrated by employees at OpenAI waiting two years to liquidate shares only to find the company permitted them to unload $30 million worth of stock. Elsewhere in Asia, the political sphere is adjusting to the release of former Thai Prime Minister Thaksin Shinawatra from prison; despite his release, he retains considerable sway as his party remains a component of the current ruling coalition, setting the stage for potential shifts in Bangkok politics.