Business Times

• European shares reached a new record close, with the Stoxx 600 index hitting record highs in three of the last four trading sessions. • Strong corporate earnings helped offset market volatility and investor uncertainty stemming from ongoing tensions in the Middle East. • While most regional benchmarks remained muted or trended lower, Spain’s IBEX index bucked the trend with a 0.2 per cent increase.

• Philippine annual inflation slowed to 6.2% in July, though it remains significantly above the central bank's 3% target for 2026. • To combat rising prices, the Bangko Sentral ng Pilipinas (BSP) has already increased its key interest rate by 50 basis points in 2026. • The economic situation is critical as the Philippines faces some of the fastest inflation and slowest growth in Southeast Asia, with Q1 2026 growth sliding to 2.8%.

• South Korea's Kospi and other Asian markets declined following a period of US tech rallies, with MSCI’s Asia Pacific gauge sliding 0.7%. • Market performance was mixed across the region: Japan’s Topix fell 0.3% and Hong Kong’s Hang Seng dropped 0.5%, while Australia’s S&P/ASX 200 rose 1.3% and the Shanghai Composite gained 0.2%. • The downturn was widespread, with eight of the 11 industry groups tracked by MSCI posting losses.

• The Dow Jones Industrial Average and S&P 500 closed at record highs, with all three major US indices ending the session higher. • Market gains were primarily driven by strong earnings reports from AI-linked companies and investor optimism regarding potential deals in the Middle East. • This surge reflects continued investor confidence in the artificial intelligence sector's ability to drive corporate growth and economic stability.

• The Japanese yen surged up to 5% over three trading sessions following suspected currency interventions by US and Japanese authorities. • Traders are closely monitoring the market for further interventions to stabilize the currency pair against the US dollar. • This volatility comes amid heightened focus on potential US economic policies and the influence of figures like Scott Bessent and Donald Trump.

• Hackers have launched an ongoing attack targeting "cold wallets," which are typically considered the most secure offline storage for cryptocurrency. • Tens of millions of dollars in Bitcoin are reportedly being siphoned from these secure hiding places. • This breach is significant because it undermines the perceived safety of cold storage, which is designed to protect assets from online vulnerabilities.

• Malaysia has emerged as a global leader in AI infrastructure, becoming one of the world's four largest net exporters of AI-related hardware. • According to the International Monetary Fund, Malaysia now shares this top-tier status alongside South Korea, Taiwan, and Thailand. • This growth is driven by a significant wave of investment in semiconductor chips and AI hardware, positioning the nation as a regional economic standout.

• 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. • This coordinated action aims to curb excessive volatility in the foreign exchange market and prevent the yen from weakening further.