ECB Set for September Rate Hike as Energy Prices Fuel Inflation 
Asian Stocks Rally as AI Optimism Fuels Chipmaker Surge 
Canada Retaliatory Tariffs on U.S. Goods Take Effect 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
Asian Stocks Mixed as Korean Chipmakers Rally 
Oil Prices Rise as Hormuz Tensions Threaten Supply 
OPEC+ Expected to Hold October Oil Output Steady 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
China Expands Influence in Global Gold Market 
Uranium Prices Could Top $100 as Nuclear Demand Grows 
European Stocks Flat as Iran Tensions, ECB Rate Hike Loom 
Japan Foreign Reserves Plunge $79.6 Billion After Record Yen Intervention 
Japan, U.S. Stay Aligned on Yen as Currency Surges 
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Asian stock markets paused on Monday after posting strong weekly gains, with thin holiday trading in China, South Korea, Taiwan, and the United States keeping activity subdued. Investors turned cautious following weak Japan GDP data and ahead of key global economic releases later this week, including U.S. fourth-quarter GDP and global manufacturing surveys.
Japan’s economy expanded just 0.1% annualized in the December quarter, sharply below the 1.6% forecast, as government spending weighed on growth. The disappointing data highlights the economic challenges facing Prime Minister Sanae Takaichi and strengthens expectations for additional fiscal stimulus. Despite the weak figures, the Nikkei index edged up 0.2%, extending last week’s 5% rally. MSCI’s Asia-Pacific index outside Japan gained 0.1%, while South Korea and Taiwan recently posted weekly surges of 8.2% and nearly 6%, respectively.
Market strategists warn that heavy investment in AI infrastructure could trigger volatility, particularly in Asian memory stocks. Concerns are mounting that if major technology firms slow capital expenditure, sectors like Korean and Taiwanese semiconductors could face sharp corrections after significant gains.
In the United States, S&P 500 futures rose 0.2% and Nasdaq futures added 0.1% as investors await Walmart earnings for insight into consumer spending trends. Defensive stocks have outperformed amid a rotation away from technology shares, pressured by soaring AI-related capex costs. Hyperscaler capital expenditure plans have climbed to $660 billion, contributing to a 7% year-on-year drop in S&P 500 share buybacks.
Bond markets attracted strong inflows as Treasury yields fell, with two-year yields closing at 3.408%, their lowest since mid-2022. Markets now price in a strong probability of a Federal Reserve rate cut by June. The U.S. dollar index slipped to 96.890, while gold eased to $5,014 per ounce and oil prices held steady, with Brent crude at $67.74 per barrel.
