South Korea recorded a 68.7% surge in August exports to $98.25 billion on strong semiconductor demand, while Japanese corporate capital spending grew 1.6% in the second quarter. Meanwhile, geopolitical risks flared as Kuwait intercepted Iranian missile attacks and the Dutch central bank moved 86 tonnes of gold to London. In property markets, China expanded mortgage terms to 40 years and Hong Kong's MTR drew four developer bids for a major railway station project.
01Macro
South Korea August Exports Surge 68.7% Year-Over-Year
Hyper-scale cloud infrastructure buildouts have concentrated South Korean export exposure into memory chips, leaving national trade balances tethered directly to North American data center capital expenditures.
South Korea reported a 68.7 percent year-on-year surge in August exports to $98.25 billion, extending an expansion streak to 15 consecutive months. The Ministry of Trade, Industry and Energy released the figures, which beat the 62.6 percent median forecast from a Reuters poll of economists. shipments drove the increase, skyrocketing 209 percent to $46.65 billion on heavy infrastructure spending by major cloud providers including Google and Amazon. This record chip demand pushed the monthly to $34.75 billion, marking the third straight month the surplus has exceeded $30 billion. Meanwhile, automobile exports fell 29.8 percent to $3.85 billion due to partial wage strikes and summer holiday production schedules.
August Export Breakdown by Sector ($B)
Semiconductors accounted for nearly half of total export value in August.
Japan Corporate Capex Rises 1.6% Year-Over-Year in Q2
Record corporate profitability converting into hardware and software investment strengthens the central bank's justification to normalize monetary policy against a tightening labor market.
Japanese corporate spending on plant and equipment rose 1.6 percent in the second quarter compared to the same period a year earlier, according to Ministry of Finance data released on Tuesday. The acceleration from a meager increase in the previous quarter was driven by manufacturing sector investments in automation, , and digital transformation to offset a persistent labor shortage in an aging population. Corporate sales rose 5.9 percent year-on-year, while recurring profit surged 24.6 percent to a record 44.7 trillion yen. The stronger-than-expected figures will be incorporated into revised gross domestic product data due on September 8, potentially lifting preliminary annualized growth from 1.1 percent. This domestic resilience supports the case for the Bank of Japan to raise its policy at its upcoming September 18 board decision.
Japan Capital Spending Growth (%)
Capex growth accelerated sharply from the previous quarter.
Netherlands transfers 86 tonnes of gold to London citing geopolitical unrest
Concentrating reserves at the Bank of England trades transatlantic geographic insulation for instant liquidity in London, showing central banks prioritize immediate asset deployability during systemic crises.
The Dutch relocated 86 tonnes of from North America to London, citing increasing geopolitical unrest and the need to improve crisis deployability. The Bank of England now holds the reserves, which the institution regards as more easily tradable during market disruptions than holdings in the United States and Canada. The transfer, executed between March and August, combined physical transport through Zeist with simultaneous buying and selling operations to mitigate transit risks. Prior to the reallocation, the central bank held 31.3 percent of its reserves in New York and 19.7 percent in Ottawa, figures that both dropped to 18.5 percent. London's share expanded from 18.1 percent to 32.1 percent, while domestic storage remained at 30.8 percent. Total Dutch gold reserves stood at 612.4 tonnes, valued at €72.2 billion at the close of 2025.
Dutch Gold Reserve Location Share (%)
London holdings nearly doubled while North American shares declined.
Kuwait Fends Off Iranian Attack Amid Rising Middle East Tensions
Direct attacks on Kuwait jeopardize Persian Gulf maritime shipping lanes and energy export hubs, embedding higher geopolitical risk premiums into global crude and freight pricing.
Kuwait's army confronted hostile missile and drone attacks from Iran, according to reporting by cnbc.com. The state-backed defense operations intercepted incoming targets, generating explosions heard across the country while officials urged residents to follow safety guidelines. The strikes follow retaliatory actions by Iran against regional U.S. allies including Jordan and Bahrain. President Donald Trump stated that the hostilities would not persist much longer following heavy U.S. military strikes on Tuesday. Meanwhile, administration officials are attempting to contain the geopolitical fallout ahead of November midterm elections amidst widespread public disapproval recorded in recent polling.
Major Hong Kong Developers Bid for Large-Scale MTR Topside Project
Strong developer participation in MTR topside tenders shows major builders still rely on rail-integrated land grants to secure premier long-term residential pipeline despite broader market hesitation.
scmp.com reports that MTR Corporation received four bids for the Tuen Mun Area 16 Station phase two property development when tender submissions closed on Wednesday. Major Hong Kong developers including CK , Sun Hung Kai Properties, and Henderson Land Development submitted bids for the project, alongside a consortium of Sino Land, Kerry Properties, China Overseas Land & Investment, and Great Eagle. MTR Corp plans to announce the tender results later this week after detailed consideration. The project offers a gross floor area of nearly 3 million square feet, including its commercial component. Vincorn Consulting and estimates the development's accommodation value at HK$4,000, or US$510, per square foot, placing the project's total value near HK$12 billion.
Tuen Mun Project Metrics (text)
The project spans nearly 3 million sq ft with an estimated HK$12B total value
China Introduces New Home Finance Rules to Reduce Buyer Risks
Tying developer fund disbursements to final safety certifications rather than structural completion restricts early project liquidity, prioritizing buyer delivery protection over developer cash flow.
China introduced new housing finance rules extending the maximum term to 40 years from 30, according to scmp.com. The changes alter how mortgage funds are released for pre-sold homes, tying the disbursement to project completion filings and safety certifications rather than the completion of the main structure. Analysts note the reform aims to reduce buyer risks rather than directly stimulate property demand in a weak market.
Maximum Mortgage Term (years)
The maximum mortgage term has been extended by 10 years.
Kazakhstan plans to double oil refining capacity by 2040
Scaling state refining capacity turns a crude-exporting nation into a domestic petrochemical supplier, insulating it from regional fuel deficits without relying on neighbor-state trade.
Kazakhstan plans to more than double its refining capacity by 2040, according to oilprice.com. The Energy Ministry outlined a 2025-2040 plan to lift annual refining capacity to 40 million tons from the current 18 million tons. This expansion relies on scaling up operating refineries to 29 million tons annually, alongside a new major refinery designed to add 10 million tons per year. The resulting output increase will curb import reliance and feed a growing domestic petrochemical sector. Kazakhstan produced 15.47 million tons of fuel last year and targets 15.49 million tons this year. A new refinery is slated for commissioning by 2033 to turn the country into a net fuel exporter and erase domestic shortages. Meanwhile, domestic demand remains at record highs, and Kazakhstan has resisted exporting fuels to ease shortages in Russia to avoid secondary sanctions.
Refining Capacity (million tons)
Total refining capacity will more than double by 2040.
Surging tech exports and rising Japanese capital expenditure point to resilient Asian trade, yet escalating Middle Eastern conflict and central bank gold movements reflect deep global anxiety. Whether stimulus measures in China can offset these spreading geopolitical risks remains unresolved.
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