[REVISION HISTORY]
Asian stocks rally on US inflation slowdown and bank growth
Updated 1 time since CLSTR started tracking revisions of this situation.
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2026-08-07 16:43 UTC → 2026-08-18 00:45 UTC ·
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Asian stocks rally on US inflation slowdown and bank growth
The Asian equity rally that began in mid‑July 2024 after a 0.4 % 0.4% drop in U.S. CPI has persisted through mid‑2026. A second slowdown in June 2026 again cut the odds of a July Fed hike to roughly 16 % 16% and reignited buying, with the MSCI Asia‑Pacific index (ex‑Japan) gaining 2‑3 %. 2–3%. In early June, Singapore’s Straits Times Index jumped 1.2 % 1.2% to 5,097 points as DBS, OCBC and UOB led a bank‑driven rally; the gains were reinforced by a brief oil‑price surge linked to renewed U.S.–Iran tensions. Meanwhile, rally. While geopolitical stress caused Chinese and Hong‑Kong Hong Kong markets slipped amid the same geopolitical stress, highlighting the rally’s sensitivity to Middle‑East developments. slip, Thailand’s SET index posted a series of gains from mid‑June to early July, climbing climbed above 1,590 points in mid-June as foreign inflows surged to a 20‑week high and banking stocks posted double‑digit advances. The broader Asian market benefited from falling oil prices after reached a U.S.–Iran memorandum on the Strait of Hormuz and from upbeat U.S. equity performance. 20-week high. Banking stocks continued to dominate: Singapore’s three major banks hit record highs in early July, pushing remain the STI up 3.6 % over four sessions; UOB’s shares surged nearly 10 % in a week, while UBS reached a 52‑week high. primary driver of this momentum. In August 2026, UOB reported a 26 % 66% jump in 2023 net profit and, in August, a 66 % rise in H1 2026 profit net profit, with wealth‑management its securities brokerage arm, UOB Kay Hian, seeing a 51.6% surge in commission and trading income. Wealth management income up 30 % across ASEAN, underscoring ASEAN-4 markets (Malaysia, Indonesia, Thailand, and Vietnam) rose 30% year-on-year, bringing high-net-worth assets under management to S$204 billion. Fitch Ratings projects that Singapore’s major banks—DBS, OCBC, and UOB—will maintain profitability through 2026 by leveraging wealth management growth to offset net interest margin pressures from lower interest rates. To mitigate the sector’s central role market’s heavy concentration in the rally. Geopolitical factors keep oil near $85‑86 a barrel, and banking sector, the combination Monetary Authority of weaker U.S. inflation, strong semiconductor earnings and resilient banking fundamentals continues Singapore has expanded its Equity Market Development Programme to shape Asian market sentiment. S$6.5 billion this year to boost investor participation and diversification.
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- 2026-08-18 00:45 UTC Asian stocks rally on US inflation slowdown and bank growth
- 2026-08-07 16:43 UTC Asian stocks rally on US inflation slowdown
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