Indonesia unexpectedly posted a trade surplus of USD 0.13 billion in July 2026, beating expectations of a USD 0.3 billion deficit, compared with a USD 4.13 billion surplus in the same month last year. It was the first monthly trade surplus in three months, as exports rose more than expected. Exports grew 6.05% yoy, after an 8.84% increase in June, surpassing forecasts of a 3.4% rise. Imports surged 27.02% yoy, exceeding estimates of 24.1% and slowing from a 34.27% increase in June, amid higher oil prices.

Japan’s 10-year government bond yield jumped to around 2.99% on Tuesday, reaching its highest level since 1996 as expectations mounted that the Bank of Japan will raise interest rates this month to address the impact of a weak yen and import-driven inflation. Reports indicated that US Treasury Secretary Scott Bessent urged Prime Minister Satsuki Katayama and BOJ Governor Kazuo Ueda to raise interest rates, following his earlier remarks that he expects the Japanese central bank to “do the right thing.” Japanese bond yields also tracked US Treasury yields higher as investors increased bets that the Federal Reserve will deliver a September rate hike. Elsewhere, oil prices climbed for a second straight day after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan. Higher energy costs are fueling inflation concerns and strengthening expectations for tighter monetary policy.

South Korea's exports surged 68.7% yoy to USD 98.25 billion in August 2026, surpassing estimates of 62.6% and accelerating from an upwardly revised 63% jump in July. Exports rose for the 15th consecutive month, marking the third-highest monthly figure on record, after exceeding USD 100 billion for the first time in June. The increase was driven by strong demand for memory chips, with semiconductor exports rising for the 15th consecutive month and soaring 209.0% to a fresh record high of USD 46.65 billion, surpassing USD 40 billion for the third consecutive month. Petroleum shipments also soared 65.3%, while exports of petrochemical products climbed 12.2%. By contrast, car exports plunged 29.8%, due to fewer working days during the summer holiday season and disruptions amid wage increases. Shipments to China jumped 119.3%, boosted by strong demand for semiconductors and general machinery, while those to the US soared 89.3%, supported by export growth in semiconductors and computers.

Japanese companies’ spending on plant and equipment rose 1.6% year-on-year in Q2 2026, rebounding from a flat reading in the prior period and comfortably exceeding market expectations of 0.2%. Non-manufacturing spending accelerated (4.7% vs 0.3% in Q1), boosted by gains in services (25.9%), goods rental and leasing (24.9%), electricity production, transmission and distribution (18.2%), and transport and postal activities (0.4%). In contrast, manufacturing investment remained weak, falling 3.7%, after a 0.4% decline in Q1. Spending dropped sharply in information and communication (-29.3%), petroleum and coal products (-26.1%), general-purpose machinery (-22.5%), transport equipment (-17.0%), and production machinery (-2.3%). Overall, the data suggest corporate investment gained momentum in Q2, although manufacturing remained constrained by softer capital spending in several key industries.

Crude oil climbed above $86 per barrel on Tuesday, extending gains from the previous session as renewed hostilities in the Middle East raised concerns about further disruptions to energy flows from the region. US forces targeted two Iranian rocket launchers on Larak Island, while Tehran responded with attacks on the UAE and Jordan, marking a resumption of hostilities between the US and Iran after roughly a month of relative calm. President Donald Trump also extended military threats to Kharg Island, Iran’s key oil export hub. Meanwhile, oil shipments continue to pass through the Strait of Hormuz, with major Gulf producers including the UAE, Saudi Arabia, Kuwait, and Iraq still exporting some volumes. However, a supertanker caught fire in the strait after hitting two naval mines, underscoring the persistent risks facing Hormuz shipping. Elsewhere, refinery strikes in Russia have further tightened global refining capacity, driving refined-product margins to fresh highs.

UK shop price inflation accelerated to 1.5% year-on-year in August 2026 from 0.9% in July, reaching its highest level since February 2024 as rising energy, input, and commodity costs increasingly fed through to retail prices. Food inflation climbed to a four-month high of 2.8% from 2.2%, with particular pressure on ambient foods that are typically imported and processed. Meanwhile, non-food inflation rose sharply to 0.9% from 0.2%, also the highest since February 2024, as strong demand linked to the artificial intelligence boom pushed up prices for memory chips and storage used in consumer electronics. BRC Chief Executive Helen Dickinson said higher costs are beginning to filter through into prices. Broader UK consumer inflation also accelerated to a four-month high of 2.9% in July, while the Bank of England expects CPI inflation to peak at 3.2% in October and November and food inflation to reach 3.5% in December.