Euro zone corporate lending growth at 3-year high, ECB says By Reuters

• European Central Bank (ECB) President Christine Lagarde defended the bank's recent interest rate hike, asserting it is necessary to bring inflation down to the 2% target by next year. • To avoid over- or underreacting to volatility, the ECB is now utilizing a range of "milder and harsher" scenarios to forecast the impact of geopolitical events.

• Morgan Stanley analysts have issued a warning regarding potential liquidity shortages and "money tightness" as the current quarter comes to a close. • The concern centers on the volatility of short-term funding markets, which can lead to spikes in borrowing costs for financial institutions.

• Major U.S. indices showed mixed results, with the Nasdaq jumping 2% driven by tech and communication services, while the Dow achieved a record closing high. • Gold prices declined by nearly 2% as investors reacted to renewed interest rate jitters following recent U.S.-Iran strikes.

• India's stock market is facing a potential crisis as a severe "Super El Niño" threatens the monsoon season, following a decade-low start to rainfall. • The weather phenomenon is particularly concerning because 56% of India's GDP is tied to consumption, which relies heavily on agricultural stability.

• Asia-Pacific stock markets showed mixed performance as investors monitored ongoing U.S.-Iran negotiations and anticipated upcoming U.S. employment data. • Regional indices saw varied movements, with Australia's ASX 200 rising slightly to 8,827.00 and Shenzhen's SZI growing by 0.85% to 15,946.72.

• Global financial firms are shifting their Asia-Pacific expansion focus toward South Korea, according to a recent survey conducted by ASIFMA and KPMG. • This strategic pivot is driven by South Korea's regulatory clarity, stable policy environment, and emerging capital market opportunities.

• Asian stocks rose following upbeat Purchasing Managers' Index (PMI) data from China, with technology sector growth driving a strong quarter. • The MSCI Asia ex Japan Net USD index climbed approximately 21% over the last three months, with South Korea emerging as the world's best-performing major equity market this year.

• The Indian stock market turned negative on Tuesday, with both the Sensex and Nifty 50 indices slipping into the red following a previous session of losses. • The downturn coincided with the implementation of quarterly rebalancing for several NSE indices and a significant slump in the Nifty IT sector, where stocks like Infosys, TCS, and Wipro fell up to 3%.

• Asian stock markets are poised for a record-breaking quarter, led by massive gains in semiconductor-driven sectors. • Japan's Nikkei is projected to rise by over 36% for the quarter, while Taiwan's benchmark index is set for an even larger increase of more than 40%.

• Axis Bank's Chief Financial Officer, Puneet Sharma, has resigned from his position. • Jagsonpal Pharmaceuticals will acquire 85% of Aequitas through a Share Purchase Agreement.

• The European Central Bank (ECB) is refining its approach to maintaining price stability and preserving the purchasing power of the euro amid an uncertain economic environment. • Since 2022, the ECB has focused on integrating advanced, real-time data and developing a specialized battery of underlying inflation indicators to better track economic trends.