Public Markets 8-Hour Briefing
×Asia-Pacific Markets
South Korean stocks rebounded after their biggest one-day slump on record, with bargain hunters returning to a market battered by panic selling. K Bank Co. surged in its trading debut as the broader market recovered from the previous day's record rout. The Philippine inflation rate rose for the third month in a row, putting the economy in a delicate position ahead of expected price surges following the Iran war.
Chinese Financial Markets
China will issue special sovereign bonds to recapitalize some of its largest banks, marking an expansion of Beijing's efforts to fortify the nation's $69 trillion financial system. The ongoing selloff in China's megacap technology stocks shows little sign of easing as investors fret over spiraling spending amid heated competition. China set its most modest growth target in more than three decades, in a tacit acknowledgment that the model powering the country's rapid rise for four decades is showing strains.
Middle East Conflict Impact
Gold pushed higher after the dollar declined and the war in the Middle East entered a sixth day with no sign of resolution. Gold edged higher amid the ongoing U.S.-Iran conflict as investors remained focused on the evolving geopolitical landscape. Oil shipment costs from the US to Asia hit a record high, with some deals already falling through as rates sky-high. Airlines and other large fuel buyers have been loading up on oil derivatives contracts in recent days to keep their bills from spiraling as the US-Iran war pushes prices to multi-year highs.
US Market Developments
Goldman Sachs Chair and CEO David Solomon discussed the market reaction to the Iran attacks, his views on AI and why he is keeping an eye on the private credit market. Morgan Stanley will lay off 2,500 employees across the company, according to reports. Investors are rushing into US money-market funds, lifting total assets to a record $8.271 trillion as the war in Iran fuels a broad flight to safety.
European Market Outlook
The European Central Bank must prepare for a stronger euro if the continent wants to boost the single currency's global status, Governing Council member Pierre Wunsch said. Manufacturing rose as tariffs weighed on consumers, with the Fed Beige Book showing economic activity increased at a slight to moderate pace across most regions in recent weeks.
Emerging Market Trends
The Australian dollar faces more downside than upside risk in the near term, according to NAB. Australia's household spending rebounded in January, signaling resilient consumer demand even as the outlook is clouded by the risk of further interest-rate increases and higher energy costs. New Zealand house prices edged higher in February, though the property market remained broadly subdued with values still down on a year earlier.
Technology Sector
Nvidia CEO Jensen Huang suggested the demand for AI chips went "from very high to higher than that," indicating continued strength in the semiconductor sector. The ongoing selloff in China's megacap technology stocks shows little sign of easing as investors fret over spiraling spending amid heated competition. CPUs are back en vogue in the data center as companies reassess their computing architectures.
Private Markets & Credit
Blackstone financed its acquisition of residential services provider Champions Group with a more than $1 billion private credit loan as buyout firms and lenders seek refuge from sectors prone to economic volatility. Investors are boosting short positions in Blue Owl Capital Inc., betting the stock has more room to fall despite wiping out nearly one-third of its value this year. KKR Co-CEO Scott Nuttall discussed the firm's evolution into a diversified global investment platform and its dealmaking priorities amid the changing market environment.
Regulatory & Policy
Wall Street's main regulators are advancing plans to oversee the crypto industry and surging prediction markets with new measures likely to be laced with longstanding implications for broader financial markets. The US Senate rejected a measure to halt Iran war operations, maintaining the current military posture in the region."