Regional Tech Rally Lifts Asia-Pacific Markets Amid Persistent Middle East Tensions

• Asian stock markets rallied on Monday as a surge in chipmaker shares lifted indices across the region. • India's Nifty 50 gained 0.1%, while Thailand's SET rose 1.1% and Japan's TOPIX climbed 0.6%.

• Bernstein warned that rising U.S. Treasury yields continue to pose an underpriced risk to Asian stock markets. • Earnings expectations have reached record levels in Japan, South Korea, Taiwan, and Thailand, which may mask underlying vulnerabilities.

• The Sensex dropped 383 points and the Nifty fell below 23,800 during the most recent trading session. • Pharma stocks rose 0.75%, while other sectors including Information Technology, Media, Metal, PSU Bank, and Realty fell between 1% and 2.8%.

• Analysts expect the Indian stock market to be driven next week by the West Asia conflict, crude oil prices, and US inflation data. • Ajit Mishra of Religare Broking Ltd noted that investors are monitoring how stronger-than-expected US employment data affects the Federal Reserve's September policy decision.

• Morgan Stanley analysts report that banks in Singapore and Hong Kong are positioned to benefit most from the deepening of Asian capital markets in the second half of the year. • Multinational companies are expanding across Southeast Asia due to geopolitical tensions and a desire to diversify supply chains away from a single manufacturing hub.

• The ASEAN+3 Macroeconomic Research Office (AMRO) reported on September 7, 2026, that Thailand's economy performed better than expected due to technology exports, fiscal spending, and investment. • Economic growth is projected at 2.4 percent for both 2026 and 2027, with inflation expected to be 1.6 percent and 1.3 percent respectively.

• Indian stock indices Nifty and Sensex are expected to open flat on Monday as geopolitical tensions between the US and Iran drive up crude oil prices. • Gift Nifty is currently trading near the 24,000 mark amid rising US Treasury yields and renewed geopolitical risks.

• Investors are monitoring 10 key factors, including US inflation data and US-Iran relations, to gauge the direction of the stock market in the coming week. • Crude oil prices are expected to be a primary market driver due to ongoing developments regarding shipping routes in the Strait of Hormuz.

• The European Central Bank is implementing its second interest rate hike since June, marking the first major policy shift since September 2023. • Some Irish bank demand deposits currently offer rates as low as 0.01%, meaning a €10,000 investment would earn only one Euro in interest before tax.

• The euro area economy maintained growth levels close to its potential despite a sharp increase in energy prices. • Conflict in Iran drove up consumer prices and increased operational costs for companies across the region.

• European shares declined recently as rising oil prices put downward pressure on the market. • Oil prices are currently holding near six-week highs following attacks involving the US and Iran.