Rebound

• Australia's trade balance shifted to a surplus in June, exceeding market forecasts due to a significant rebound in exports. • The growth was driven by increased iron ore shipments to China, Japan, and South Korea, as well as stronger coal exports to India, Japan, and China. • Solid gains in liquefied natural gas (LNG) exports further contributed to the rise in overall export earnings for the month.

• European gas prices have rebounded by more than 2% as concerns over supply stability resurface. • The price increase occurs as immediate supply risks begin to outweigh hopes for diplomatic resolutions regarding energy flows. • This shift highlights the ongoing volatility of the European energy market and its sensitivity to geopolitical tensions.

• Asian stock markets rallied following gains on Wall Street, with South Korea’s KOSPI surging over 3% and the ASX hitting a record high. • Tech giants led the rebound, featuring significant jumps for SK Hynix (over 6%), Samsung Electronics (nearly 4%), and Foxconn Industrial Internet (nearly 9%). • Chinese and Hong Kong markets also advanced, with the CSI 300 rising 2% and the Hang Seng climbing 1.6%, bolstered by Alibaba's unveiling of its Qwen3.8-Max AI model.

• South Korea's KOSPI index surged over 5% on Wednesday, bringing its two-day recovery to a total of 7% after a significant selloff in July. • The rally was driven by record highs on Wall Street tied to AI earnings, strong demand for semiconductor leaders like Samsung, and falling oil prices. • Lower energy costs were attributed to ongoing peace deal negotiations between the U.S. and Iran, boosting investor confidence.

• Asian stock markets rallied following gains on Wall Street, with South Korea’s KOSPI jumping over 3% and the Australian ASX hitting a record high. • Tech stocks led the rebound, featuring significant gains for SK Hynix (over 6%), Samsung Electronics (nearly 4%), and Foxconn Industrial Internet (nearly 9%). • Chinese and Hong Kong markets also advanced, with the CSI 300 rising about 2% and the Hang Seng climbing 1.6%, bolstered by Alibaba's release of its Qwen3.8-Max AI model.

• The Euro area services sector drove a rebound in business activity during July, according to the latest S&P Global PMI data released on August 5, 2026. • A significant drop in PMI price gauges may allow policymakers to delay further interest rate hikes until the inflation outlook becomes clearer. • In separate market news, SpaceX stock fell 10% following its debut earnings report.

• Asian shares showed mixed results and European markets trended higher on Tuesday following a Wall Street rally fueled by easing oil prices. • Market analysts are debating the effectiveness of recent currency interventions, noting that such moves may not address core economic drivers like inflation and interest rates. • BMI, a unit of Fitch Solutions, suggests that US-backed operations carry more signaling weight than solo actions by Tokyo, though the scale of US contribution may be limited.