Public Markets 8 Hours

Last updated: May 12, 2026, 11:30 PM ET

Global Macro & Inflation Pressures

Asian currencies mostly consolidated against the dollar as markets digested the latest U.S. Consumer Price Index data, which showed inflation accelerating due to energy disruptions linked to the Iran conflict. This persistent inflation has driven up Treasury yields and renewed bearish wagers on U.S. Treasuries, leading traders to increase expectations for a Federal Reserve interest rate hike, which in turn supports a stronger dollar, according to Goldman Sachs Group. The energy shock is keeping yields elevated while economic growth proves relatively resilient, prompting Goldman Sachs to project further near-term dollar strength.

Asian Fixed Income and Currency Woes

Japanese government bond yields rose sharply, hitting a 20-year high last seen in 1997, tracking the overnight rally in U.S. Treasury yields following the hotter-than-expected U.S. inflation report. Meanwhile, regional central banks are actively defending their currencies; Indonesia’s central bank vowed “smart interventions” as the rupiah sank to a record low, while the Indian government more than doubled tariffs on imported gold and silver to curb bullion purchases and stabilize the rupee amid Middle East fallout. In the Philippines, sovereign bonds are extending a selloff as markets price in a potential 50-basis-point rate hike, the largest increase since 2023.

Geopolitics and Commodity Supply Chains

The ongoing conflict in the Middle East is severely straining commodity logistics, leaving oil prices steady as shipments from Iran’s main export terminal appear halted. This disruption is forcing logistical workarounds; for instance, new overland routes using massive convoys across Saudi Arabia, the U.A.E., and Oman are functioning as an emergency lifeline around the expanded definition of the Strait of Hormuz. In China, this energy shock is stressing power supplies in the manufacturing heartland, while maritime experts caution that vessels are traveling without transmitting safety data due to the risks in the Strait.

Corporate Moves and Sectoral Divergence

The global memory chip shortage, fueled by the artificial intelligence buildout, is creating a widening gulf between corporate winners and losers in stock performance; in contrast, AI infrastructure demand is booming, evidenced by American Electric Power Co. seeking to raise $2.6 billion in stock. Mining giant BHP Group signaled that dealmaking remains a key component of its growth strategy under incoming CEO Brandon Craig, while in Japan, cosmetics maker Shiseido Co. saw its shares dip the most in six months despite a profit beat, as first-quarter net sales narrowly missed estimates. Furthermore, French hedge fund Capital Fund Management expanded its footprint by opening an office in Shanghai, bringing its assets under management to over $27 billion.

Indian Markets and Economic Resilience

Indian equities continued their slump, driven by a tech rout, even as the government implemented austerity measures, though Bajaj Broking suggested a recovery in tech shares might be slow. Despite foreign outflows concerns, S&P Global Ratings maintains that India’s underlying economic strength is weathering global pressures better than headline figures suggest. Compounding domestic pressures, Indian truckers are facing severe delays, with queues of nearly 30 trucks stranded at roadside service stations outside Nagpur, waiting for diesel supplies.

Regulatory Shifts and Political Maneuvering

The Organization for Economic Co-operation and Development projects that the Bank of Japan’s policy rate will finally climb to 2% by 2027, amidst rising domestic inflation pressures. On the political front, the Trump Organization has scrapped plans for its first branded hotel in Australia, while in Nebraska, Cindy Burbank announced her intention to drop out of the Senate primary to clear the field for independent Dan Osborn. Meanwhile, Justice Department officials are reportedly reviewing settlement terms that would compel the I.R.S. to cease audits of former President Trump, his family, and their businesses.