Indian companies and financial institutions significantly reduced their short-term borrowing from the debt market in August, issuing ₹1.18 lakh crore in commercial papers, a drop of 23% month-on-month. This decline is attributed to hardening bond yields, which made debt market financing more expensive.

Indian markets saw gains on Friday. Britannia Industries is focusing on localized strategies. Hyundai aims for growth through domestic sales and exports. Alembic Pharma received US FDA EIR. Diamond Power secured a Rs 236 crore order from Adani Energy. GMR Airports reported a passenger traffic decline. RailTel received a Rs 209 crore order.

China s shift towards yuan appreciation is poised to boost emerging-market currencies, fueled by expectations of lower US interest rates. The yuan s influence as a regional anchor and its impact on trade flows extend beyond Asia. This policy change signals a departure from maintaining yuan stability, potentially easing central bank policies and benefiting the broader emerging market space.

Asian stocks began cautiously as markets anticipate potential rate cuts from the U.S. Federal Reserve and possibly the Bank of Canada this week. Investors are closely watching the Fed s future guidance amid economic concerns and President Trump s criticism. China s economic data and U.S.-China trade talks are also key factors influencing market sentiment, alongside oil price fluctuations and gold s near-record highs.

Gold prices are stable, close to record highs. Investors are watching the US Federal Reserve meeting. A rate cut is expected after weak labor reports. US-China trade talks concluded in Madrid. Trump is willing to sanction Russia. Silver, platinum show varied movement. Market participants are closely monitoring the Fed s stance regarding labor market concerns and broader economic risks.

Oil prices saw minimal change on Monday. Investors are closely monitoring the impact of Ukrainian drone attacks on Russian refineries. These attacks could disrupt Russia s crude and fuel exports. The United States fuel-demand growth is also under observation. Donald Trump is willing to impose sanctions on Russia. Trade talks between the United States and China are underway in Madrid.

Dollar remained stable before key central bank meetings. Euro showed little reaction to France s credit downgrade by Fitch. Investors are awaiting rate decisions from the US Federal Reserve, Bank of Japan, and others. Market anticipates potential rate cut from the US Federal Reserve. Focus is also on US-China trade talks and TikTok divestiture deadline.

South Korean stock market witnessed a surge. KOSPI benchmark increased, marking a tenth consecutive session of gains. This surge followed the government s decision to scrap a proposed stock investment tax hike. Samsung Electronics saw a rise, while Hyundai Motor and Kia Corp experienced declines. Foreign investors actively bought shares. The Korean won strengthened against the dollar.

Indian rupee and bond traders are keenly awaiting the Federal Reserve s anticipated interest rate cut this week, despite the rupee s recent record lows against the dollar. While a weaker dollar might offer some support, the rupee is expected to underperform its Asian counterparts.