Asia’s capital surplus favours the safest winners

• BofA Securities upgraded T-Mobile US Inc (NASDAQ:TMUS) from "Neutral" to "Buy" on Monday. • The bank set a price target of $220, based on a conservative 12.7x free cash flow (FCF) multiple.

• RBC economists report that while rising gasoline prices have increased household costs, these spikes have not significantly spread to other expenses. • The Bank of Canada's May Business Outlook Survey indicates that long-run inflation expectations remain "well-anchored," even with oil prices exceeding US$100 per barrel.

• Global markets showed mixed results as investors reacted to a fresh escalation in the Middle East conflict and concerns regarding AI-related stock valuations. • Wall Street futures remained mixed on Monday morning, though the Dow pointed higher following a positive close for major North American markets on Friday.

• Oil prices surged 5% following Iran's declaration that the Strait of Hormuz is closed, signaling a major disruption to global energy shipping. • Market analysts are highlighting critical investor questions regarding Nvidia stock and examining significant valuation gaps within the clean tech sector.

• The benchmark Sensex and Nifty indices erased early losses to end flat on Friday, eventually rallying by more than 1%. • Gains were driven by heavyweight stocks including Reliance Industries, ICICI Bank, and HDFC Bank, alongside a surge in IT shares.

• Investors are preparing for a volatile week as US stock markets, currently near record highs, face a combination of corporate earnings reports and critical economic data. • Market stability will be tested by ongoing geopolitical tensions in the Middle East, specifically developments involving Iran, which may introduce new risks.

• Approximately 5% (one in 20) of car loans issued to young people are currently in serious delinquency. • This represents the highest delinquency rate for this demographic since the global financial crisis.

• Indian stocks opened lower as market sentiment was negatively impacted by surging oil prices and a weakening rupee. • Investors are currently monitoring global growth prospects, commodity price fluctuations, and anticipated policy decisions from major central banks.

• The BSE Sensex plummeted 670 points and the Nifty fell below 24,015, driven by rising crude oil prices and escalating tensions between the US and Iran. • This domestic downturn mirrored a broader Asian market crash, with Japan's Nikkei 225 dropping 1,237.73 points (1.81%) and South Korea's KOSPI sliding 7.25%.

• Indian stock markets tumbled at the start of the week, with the BSE SENSEX dropping over 670 points and the NSE NIFTY 50 falling 192 points. • The decline was triggered by escalating geopolitical tensions between the US and Iran, which caused a surge in crude oil prices and volatility across Asian indices.

• The FTSE 100 dropped 5 points to 10,492 as global stocks struggled for direction following new US-Iran strikes. • Oil prices surged to a three-week high due to geopolitical tensions, while Asian markets saw significant declines, including a 1.9% drop in Japan's Nikkei and a 7.6% fall in Korea's Kospi.

• South Korea's benchmark Kospi index plummeted nearly 9% on Monday, marking the steepest market sell-off the country has experienced in several months. • The crash was primarily driven by a sharp retreat in semiconductor shares and heightened investor panic stemming from mounting geopolitical tensions.