Global Stock Markets
The U.S. dollar strengthened toward 158.36 yen driven by rising oil prices and hawkish Federal Reserve commentary, while China's new energy vehicles reached 65.1% of passenger car sales in July. Meanwhile, Accel raised $550 million for an Indian venture fund, and China initiated a weekly Arctic container shipping route to shorten transit times to Europe.
The U.S. dollar traded around 158.36 yen on Friday, heading for a 0.7% weekly gain as doubts over a Persian Gulf peace deal sparked safe-haven demand and pushed crude oil prices higher. Brent crude rose $1.31 to $83.80 per barrel following reports that a proposal between Iran and Oman could give Tehran control over inbound shipping through the Strait of Hormuz, a condition U.S. officials maintain they will not accept. Elevated energy costs fueled fresh inflation concerns across bond markets, lifting Treasury yields and supporting the greenback. The rebound erases a substantial portion of the dollar's drop on Monday, when joint intervention by Japanese and U.S. authorities knocked the currency down from near 163 yen to a 13-week low of 155.20. Rate expectations also shifted higher after a Financial Times report indicated Federal Reserve Chair Kevin Warsh is open to a September interest rate hike if inflation data remains sticky. Traders now await the U.S. nonfarm payrolls report on Friday, with consensus estimates predicting 80,000 jobs added in July alongside an unchanged unemployment rate of 4.2%.
According to cnbc.com, electric-powered vehicles continue to tighten their grip on China's fiercely competitive car market, capturing 65.1% of new passenger car sales in July. Autohome industry data shows Geely's Xingyuan electric hatchback led the market as the bestseller with nearly 197,500 units sold in the six months through July at a price just under 100,000 yuan, or $14,820. Tesla secured the second spot with over 180,000 Model Y units sold despite a steeper price tag ranging from 263,500 yuan to 313,500 yuan. Meanwhile, BYD's highest-ranking vehicle, the Yuan UP SUV, managed only fifth place with nearly 97,700 units sold during the same period, while the Chinese car giant's overall passenger car sales dropped by more than 10% in the first half of the year. Traditional foreign automakers are steadily losing ground, leaving Volkswagen's compact gasoline-powered Lavida as the sole non-Chinese traditional foreign model in the top 10.
scmp.com reports that Hong Kong's property recovery faces a new risk as China expands its offshore tax net beyond insurance returns to potential property income. A reported 20 per cent personal income tax on certain mainland resident returns from offshore assets has triggered concerns that offshore rental income and capital gains could face similar levies. Financial services firm UBS estimates that a 20 per cent tax on Hong Kong residential investment income would compress net rental yields from about 2.2 per cent to 1.8 per cent, aligning them with mainland tier-one yields. A slowdown in the insurance business could simultaneously pressure decentralised office markets where insurers hold a major footprint. Insurance companies occupied about 6 per cent of Hong Kong's grade A office stock as of October 2025, according to CBRE. This footprint concentrates heavily in decentralised business districts, including Kowloon East at 28 per cent, Island East at 23 per cent, Tsim Sha Tsui at 17 per cent, and Wan Chai at 14 per cent, compared to just 4 per cent in Central and Admiralty/Sheung Wan.