Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
A weaker U.S. dollar and falling interest rates usually provide a lift to emerging markets, and this time China—often lagging in global rallies—may benefit from an unusual tailwind. While the Federal Reserve’s first rate cut since December failed to stir U.S. equities, history shows Chinese markets often respond more positively to easier U.S. monetary policy.
UBS analysis highlights that in the six months following the first U.S. rate cut in the last three easing cycles (2007, 2019, and 2024), the MSCI China Index delivered an average return of 11%, beating broader emerging market and global peers by 7 and 13 percentage points. Offshore Chinese stocks such as New York-listed ADRs and Hong Kong H-shares typically outperformed onshore A-shares, though this cycle could prove different.
Tech-heavy segments like internet platforms, data centers, and semiconductor stocks were past winners, rallying over 25% compared to the broader market. However, cyclical and defensive plays—such as energy producers, utilities, and transport operators—lagged, as did high-beta sectors like autos, insurance, and property. The data suggests that rate cuts alone don’t repair structurally weak industries.
Still, sentiment toward China remains fragile. With patchy economic growth, unclear policy signals, and a lack of catalysts beyond low valuations, foreign investors remain cautious. UBS this time favors A-shares, expecting local retail inflows to offset weaker foreign appetite for ADRs.
Looking ahead, UBS forecasts further Fed cuts in October and December, totaling 75 basis points, which could drive the U.S. dollar lower and ease pressure on the yuan. A softer dollar may reduce China’s capital outflows, support funding conditions, and stabilize currency risk.
Investors may not need to believe in a Chinese economic rebound; simply seeing conditions stop worsening could attract flows. With Chinese equities trading at a 30% discount to developed peers, even a modest shift in momentum could offer a much-needed reprieve.
