Public Markets 8-Hour Briefing
×Market Turmoil
European stocks are set to resume declines as the dollar strengthens amid escalating Middle East tensions. FirstRand posted a record interim profit as Africa's biggest bank by market value earned more from fees and commissions while loan growth boosted revenue.
Geopolitical Shockwaves
The Iran war is forcing investors to reevaluate profitable stock strategies, with some concluding that the "Sell America, Buy Asia" trade has reached an inflection point. Korean stocks surged by the most since 2008 after their biggest one-day slump on record, as bargain hunters returned to a market battered by panic selling.
Regional Market Moves
Asian equities rebounded as risk appetite improved on strong US economic data, though emerging-market currency volatility has surged above developed-market peers for the first time since May. Korean defense contractor LIG Nex1 jumped on reports that Gulf nations may expand orders for its missile interceptors to fend off Iranian strikes.
China's Economic Outlook
China set its lowest growth target since 1991 as the government prioritizes stability amid geopolitical shocks threatening the global economy. The modest GDP target reflects a desire to boost domestic demand while limiting fiscal support to key sectors. Chinese officials pledged to stabilize the real estate sector with city-specific policies but stopped short of major announcements needed to turn around the yearslong property crunch.
Energy Market Disruption
At least three LNG tankers were diverted toward Asia on their way to Europe as Middle East turmoil spurred competition for fuel, while freight rates set fresh records and added to market volatility. Asian economies could look to coal as a key alternative to LNG for uninterrupted power, according to Morgan Stanley.
Corporate Developments
TPG is considering options for Asia One Healthcare Sdn., including a sale or IPO, amid increasing deal activity for private equity-owned assets. Robinhood launched a new platinum credit card aimed at wealthy customers as the fintech company expands its financial services offerings.
Currency and Bond Markets
India's rupee advanced the most in Asia as the central bank stepped in to shore up the currency after it weakened to a record low. Japanese investors sold the largest amount of overseas bonds since 2024 last month, as market watchers scrutinize flows for signs that higher domestic yields were triggering repatriation.
Private Credit Concerns
Goldman Sachs Asset Management's global co-head of private credit said the sector remains resilient with few borrowers struggling to meet loan payments. However, finance leaders are assessing systemic risks in private credit as Oaktree's managing director and Moody's ratings head examine potential vulnerabilities.
Precious Metals and Commodities
Gold prices retreated as the US dollar rebounded, though geopolitical tensions continue to support safe-haven demand. Iron ore rose as China renewed its pledge to tackle overcapacity in its world-leading steel sector and set its economic growth target for the year ahead.
Defense and Technology
China's traditional businesses are jumping on the artificial-intelligence bandwagon, pouring millions of dollars into semiconductor companies. The US military affirmed its commitment to defending South Korea against North Korea after local media reported that Washington was considering redeploying regional military assets.