Middle East - MUFG Research - EUROPE SAYS

• The Sensex fell 555 points and the Nifty 50 closed at 23,635 on September 8, 2026. • Market declines occurred as crude oil prices approached $100 per barrel.

• Market volatility is expected this week due to fresh military strikes between the U.S. and Iran and upcoming comments from Nvidia CEO Jensen Huang on Artificial General Intelligence. • The Japanese yen has surged to a six-month high as investors place aggressive bets on interest rate hikes from the Bank of Japan.

• Energy traders drove market trends at the start of the trading week while U.S. markets were closed for the Labor Day holiday. • Oil prices rose to $98 per barrel and Dutch TTF gas reached €74/MWh following tit-for-tat strikes between the U.S. and Iran on regional vessels.

• The EUR/USD currency pair traded flat near 1.1625 on Tuesday as investors waited for U.S. inflation data and a European Central Bank interest rate decision. • Recent U.S. labor data showed the economy added 162,000 new jobs in August, significantly exceeding the forecast of 56,000.

• The EUR/JPY currency pair fell to around 181.20 during early European trading on Monday as the Japanese Yen strengthened against the Euro. • The decline follows projections from Japanese officials that the Bank of Japan will implement a rate hike this month.

• European bond yields rose at the start of the trading week as traders reacted to surging energy prices. • Oil climbed to $98 per barrel and Dutch TTF gas reached €74 per megawatt hour following tit-for-tat strikes between the US and Iran on regional vessels.

• Asia Pacific borrowers surged into the dollar bond market on Tuesday to secure funding before interest rates potentially rise further. • Mitsubishi UFJ Financial Group Inc., the largest bank in Japan, is among more than 10 regional issuers seeking to sell debt, including a $3.5 billion offering.

• Most Asia-Pacific stock markets declined today as rising crude oil prices fueled concerns over inflation and US monetary policy. • Japan's Nikkei 225 fell 0.27% and Australia's S&P/ASX 200 dropped 0.33%, though South Korea's KOSPI rose 0.51%.

• Asian value stocks are currently outperforming growth stocks by the widest margin since the first quarter of 2022. • Investors are shifting capital toward cheaper financial stocks as semiconductor selloffs impact the regional tech index.

• Asian stock markets showed mixed results recently, with gains in Tokyo and Seoul driven by increased investment in computer chipmakers. • Hong Kong's Hang Seng index fell 1.1% to 25,377.12, while the Shanghai Composite dropped 0.2% to 3,920.70.

• The Bathla Group building company collapsed, highlighting systemic issues within the private credit market. • Oil prices rose following increased geopolitical tensions in the Middle East.