Danske Research Team notes that equities advanced on Friday, leaving the broader market only about 1% lower for the week despite hotter US CPI, higher front-end yields and a sharp Oil rally. Cyclicals outperformed defensives and the VIX stayed below 16.

European Central Bank (ECB) President Christine Lagarde said in an interview on Saturday that the current energy shock is longer-lasting.

ING analysts Warren Patterson and Ewa Manthey note Brent is up around 3% as Saudi Arabia’s East-West pipeline shutdown intensifies supply concerns following recent attacks.

Japan Capacity Utilization down to 0.5% in July from previous 4.1%

Japan Industrial Production (MoM) came in at -0.2% below forecasts (0.1%) in July

Japan Industrial Production (YoY): 3.9% (July) vs previous 4.1%

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the third consecutive day and trading around 99.30 during Asian hours on Monday.

Iranian state media claimed an Iranian commercial vessel was struck in the Strait of Hormuz on Saturday, killing one person, amid an ongoing conflicts between the United States (US) and Iran for control over the crucial energy chokepoint, CNN reported.

New Zealand Business NZ PSI increased to 51.2 in August from previous 50.6

Omani Foreign Minister Badr Albusaidi said that a meeting in Oman between ‌Gulf countries and Iran to discuss possible agreements on the Strait of Hormuz, which had been scheduled for Monday, ‌has been postponed, Reuters reported on Sunday.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/SGD has rebounded strongly, with short-term momentum pointing higher but key resistance at 1.2705 expected to limit gains.

DBS Group Research expects Taiwan’s central bank to keep its policy rate unchanged on September 17, before raising it to 2.125% in December.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reports that USD/CNH has bounced sharply to 6.7153, with intraday gains likely capped near 6.7200.

The US Dollar Index (DXY) closes the week near the 99.00 zone, little changed on the day and holding the ground it clawed back after a brief wobble on Thursday's US inflation release.

ING analysts Chris Turner and Padhraic Garvey argue the Bank of Japan is likely to hike 25bp to 1.25% and then proceed cautiously.

US Treasury yields fall during the North American session following the release of US inflation data, but are poised to finish the week higher. The US 10-year Treasury yield is down 1 basis point to 4.951% but has gained over 16 basis points, or 3.49%, in the week.

MUFG’s Michael Wan notes that Asia FX and rates have stayed relatively stable despite sharply higher US Treasury yields, but he warns this resilience may not last in the near term.

EUR/GBP is easing on Friday and slipping toward the 0.8580 area. The cross had pushed to the top of its recent range in the high 0.8590s before running out of steam.

DBS Group Research forecasts an improvement in China’s industrial production to 5.0% year-on-year in August, helped by strong export growth driven by AI-related electronics.

Commerzbank economists, led by Dr. Henry Hao and colleagues, note Taiwan’s August trade surplus hit a record USD22.3bn, driven by strong AI-related exports. Electronics and semiconductor shipments surged, lifting overall exports and imports.

ING economists Deepali Bhargava and Lynn Song expect the Bank of Japan to raise its policy rate by 25bp to 1.25%, citing persistent price pressures. They project two further 25bp hikes in January and April 2027, taking the rate to 1.75%.

DBS Group Research expects India’s inflation to accelerate to 4.9% year-on-year, with food and energy costs driving a gradual broadening of price pressures.

Deutsche Bank’s Chief UK Economist Sanjay Raja highlights stronger-than-expected UK GDP data, with July output rising 0.4% month-on-month and broad-based gains across services, production and construction.

American consumer confidence is expected to have lost some traction in September, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.

ING’s Frantisek Taborsky notes that the National Bank of Poland maintained a dovish stance, signalling no need to adjust rates potentially until mid-next year despite rising inflation.

UOB economist Lee Sue Ann notes that the European Central Bank (ECB) delivered a widely expected 25 bps hike but signalled a more hawkish stance as inflation risks from the Middle East-driven energy shock remain elevated.

TradingKey - Overall U.S. inflation data for August was in line with market expectations, but core price pressures persist. Compounded by the recent rebound in energy prices, market attention toward t

DBS Group Research analysts Taimur Baig and Chang Wei Liang expect the Bank of Japan (BoJ) to hike rates by 25 bps at its September 17–18 meeting, citing solid Gross Domestic Product (GDP) growth, stronger wages and inflation near the 2% target.

India Bank Loan Growth increased to 19.1% in August 24 from previous 18.3%

Deutsche Bank’s Mark Wall and colleagues say the European Central Bank delivered a 25bp hike to 2.50% in September, with President Lagarde describing it as a no‑brainer.