South Korean stocks tumble 7% as AI jitters hurt chipmakers

• The U.S. economy maintained its growth trajectory throughout September, driven primarily by resilient demand within the private sector. • This expansion indicates that businesses and consumers continue to spend despite broader economic pressures and fluctuating market conditions.

• Asian and US stock markets rose on Thursday as investors reacted positively to Donald Trump's suggestion that US attacks against Iran would likely be short-lived. • The shift in sentiment led to a decline in oil prices and bond yields, providing a boost to major indexes in Tokyo, Seoul, Hong Kong, Shanghai, Sydney, Singapore, Taipei, and Jakarta.

• Asian stock markets rose, with South Korea’s KOSPI advancing 1.5% and Singapore’s Straits Times Index gaining 0.7%, as bond yields retreated and oil prices steadied. • Mitsubishi Corp climbed nearly 5% and financial stocks surged following comments from Berkshire Hathaway CEO Greg Abel, who reaffirmed the firm's long-term commitment to its Japanese investments.

• Wall Street indices trended higher on September 3, 2026, supported by steady oil prices and stable bond yields. • Despite the gains, investors remain anxious over rising inflation, increasing government debt, and the volatility of global conflicts.

• European shares declined as investors reacted to rising bond yields and growing concerns over energy-driven inflation. • The retail sector was particularly hard hit, falling 2.3%, while Italian betting firm Lottomatica tumbled 7.7% following the announcement of its takeover of Spain’s Cirsa.

• European government bond markets are experiencing a significant sell-off, leading to a sharp rise in yields across the region. • Investors are reacting to a combination of escalating inflation risks, economic growth uncertainty, and a widespread political reluctance to implement fiscal belt-tightening.

• Core bond markets are currently facing significant pressure due to persistent upside inflation risks driven by a six-month energy supply shock. • The UK British Chambers of Commerce has slightly raised its 2026 growth forecast to 1%, up from the 0.9% projection made in June.

• Benchmark indices traded lower following weak global cues, with IT shares experiencing a significant tumble after previous gains. • The decline follows mixed US economic data, specifically the ISM Manufacturing PMI, which slowed to 54.6 in August from 55.6 in July.

• Goldman Sachs has expanded its European favorite stocks list by adding three new companies from the energy, payment processing, and insurance sectors. • Among the additions is German insurer Talanx, which Goldman highlights for its lean cost base and €6 billion in resilience reserves.

• European stock markets have dropped to one-month lows as investors react to a significant surge in global bond yields. • The decline is driven by a "yield surge squeeze," where rising interest rates typically reduce the attractiveness of equities compared to fixed-income assets.

• Indian markets are expected to open flat to slightly negative on September 2, 2026, with the GIFT Nifty trading at 24,028.50, down 0.10%. • This cautious outlook follows a global selloff, including US market drops in the NASDAQ (-1.03%) and Dow Jones (-0.79%), and a steep 2.78% decline in Japan's Nikkei 225.

• Asian stocks declined on Wednesday, September 2, with the MSCI Asia Pacific index dropping 1% due to soaring oil prices. • Major markets saw significant losses, including South Korea's Kospi tumbling 2.72%, Japan's Nikkei 225 shedding 2.27%, and the Topix losing 1.72%.