Quarterly Strategy

• Over 50% of South Korea's listed companies surpassed market expectations in their second-quarter earnings reports. • These strong financial results indicate that corporate fundamentals remain resilient despite significant volatility currently affecting the Kospi.

• Japan has confirmed a joint currency intervention with the United States to stabilize the yen. • U.S. Treasury Secretary Scott Bessent stated that Washington will not hesitate to participate in further joint interventions if necessary.

• On August 3, 2026, the Indian stock market opened strongly with the Sensex soaring 500 points and the Nifty touching 24,500. • The rally was driven by optimism over an Iran deal, which caused crude oil prices to slump 5% to $81 per barrel.

• AI-linked stocks are facing significant pressure as investors grow concerned over massive capital spending, rising debt, and uncertain returns from AI investments. • South Korea’s KOSPI index reflected this volatility, experiencing a sharp 22 per cent decline throughout July.

• Gift Nifty indicates a strong opening for the Nifty and Sensex, driven by positive global cues and robust Foreign Portfolio Investor (FPI) inflows. • FPIs are shifting capital toward the Indian market to seek stability, moving away from high volatility and "chip trade" concentration risks in South Korea and Taiwan.

• Global insurance firms are increasingly targeting the Indian market following a regulatory shift that allows 100% foreign direct investment (FDI). • Major international players, including South Korea's Hanwha Group and South Africa's Discovery, are currently evaluating opportunities to enter or expand in the region.

• The Indian stock market opened higher on August 3, with the Nifty index crossing the 24,500 mark and the Sensex gaining 400 points. • Market growth was primarily driven by strong performance in the banking and automotive sectors.

• The U.S. Commerce Department reported an unexpected slowdown in economic growth for the second quarter, with an advance estimate of a 1.5% annual growth rate. • Senator Joni Ernst (R-Iowa) appeared on "Mornings with Maria" to discuss Dr. Anthony Fauci's testimony and key legislative priorities ahead of the August recess.

• The US stock market is currently struggling to regain its footing as investors await a critical upcoming jobs report and a week of major corporate earnings. • Despite recent volatility, the S&P 500 remains up over 9% in 2026, supported by strong overall corporate profit growth.

• Wall Street is preparing for a critical week of economic data, with the July jobs report serving as the primary focus for investors. • The report is essential for assessing the outlook for US interest rates after the Federal Reserve kept benchmark rates unchanged at its most recent policy meeting.

• Markets enter a pivotal week focused on upcoming jobs data and commentary from Federal Reserve speakers to gauge economic sentiment. • Key earnings reports from high-profile companies including AMD, Palantir, SpaceX, Eli Lilly, Shopify, and Caterpillar will provide critical insights into AI investment and consumer spending.