Ahead of Market: 10 things that will decide stock market action on Friday - The Economic Times

• The KOSPI is showing a slightly weak trend as it nears the 7,000-point threshold, influenced by rebounding U.S. Treasury yields and a decline in U.S. stock markets. • KB Securities Executive Director Lee Euntaek warns that rising interest rates may reduce investor incentives to fund high-risk AI companies if government bonds offer competitive returns.

• Asian stocks and bonds declined following a downturn on Wall Street, driven by rising US Treasury yields that dampened investor enthusiasm. • Market volatility is increasing as high government financing costs and long-term yields weigh on equities after years of inflation and spending.

• Foreign Portfolio Investors (FPIs) exhibited strong buying activity in the first half of August, marking the fourth consecutive fortnight of inflows into the Indian market. • Investment was primarily concentrated in the financial services, automobiles, and IT sectors, with a notable preference for mid-cap stocks.

• South Korea's Kospi index surged 6%, leading a broader rally across Asian markets following a positive trend in bonds. • Other key indices also rose, including the Hang Seng by 1.1%, the Nikkei 225 futures by 1%, and the Topix by 0.9%.

• South Korea's KOSPI index surged 5.89%, reversing previous losses and boosting investor confidence. • The rally was primarily driven by SK Hynix's announcement of a massive $28.69 billion share buyback plan.

• South Korea's net external financial assets dropped to $64 billion in Q2, marking a 12-year low after a decrease of $689.5 billion. • The decline was primarily driven by a soaring KOSPI, which increased the valuation of Korean stocks held by foreign investors.

• Thailand’s SET Index closed at 1,609.99 points on August 20, 2026, marking a slight increase of 0.23 points (0.01%) with a total trading value of THB 82.36 billion. • The market experienced an early surge driven by positive overseas trends and investor reactions to declining bond yields following U.S. Treasury movements.

• Foreign Portfolio Investors (FPIs) significantly increased their investments in the Indian financial services and IT sectors during the first half of August. • Financial services saw the largest surge, attracting Rs 6,535 crore in inflows between August 1 and 15.

• The United Arab Emirates has suspended all trade and financial dealings with Iran following reports of an Iranian missile attack targeting UAE ships. • This escalation occurs as U.S. President Donald Trump threatens an "economic campaign" against Iran to increase pressure on the regime.

• India's capital goods companies faced a challenging April-June quarter, experiencing significant pressure on both profit margins and overall earnings. • Renu Baid of IIFL Institutional Equities views this weakness as temporary, citing encouraging order books and a positive long-term outlook.

• The U.S. Treasury implemented a surprise bond buyback program aimed at limiting the rise of government bond yields. • Rising yields were driven by supply chain inflation, central bank interest rate hikes, and economic growth fueled by global AI infrastructure investments.