On a month-over-month comparison basis, the stability in the PMI suggests that the pace of growth neither accelerated nor slowed in August versus July. As the PMI remains comfortably above the 50-point threshold that separates expansion from contraction, it points to ongoing resilience in India’s economic activity despite the absence of further month-on-month improvement.

With both the current and previous readings recorded in August 2026, the latest data underline a period of steady, if not accelerating, momentum for India’s private sector, as tracked by HSBC’s composite gauge of manufacturing and services performance.

A PMI reading above 50 indicates expansion, and the move from 53.3 to 54.1 suggests that business activity in services—from finance and IT to hospitality and professional services—grew more robustly over the period. The improvement may point to firmer demand conditions and potentially stronger output and new business flows across the sector.

The uptick in the HSBC India Services PMI for August 2026 will likely be watched closely by investors and policymakers as a gauge of the health of India’s broader economy, where services contribute a substantial share of overall growth.

Over $60 billion was raised in the final 10 days of the RBI’s swap scheme, taking total mobilisations to about $136 billion. These inflows boosted India’s foreign-exchange reserves and gave the central bank greater scope to support the rupee, helping to ease pressure on domestic assets.

Upside in equities was nonetheless constrained by elevated crude oil prices and renewed geopolitical tensions in the Middle East. Investors also remained cautious amid uncertainty over the global interest-rate outlook, including the prospect of an additional rate hike by the US Federal Reserve.

Financials led the advance, with HDFC Bank, ICICI Bank, State Bank of India, and Axis Bank gaining between 1.1% and 1.9%. Other notable movers across sectors included Milky Mist (up 1.2%), Netweb (4.3%), Anant Raj (7%), and Welspun Corp (3.1%).

Output in top producer Indonesia is projected to decline by 2.9% to 56.8 million tonnes in 2027. The country will also maintain its B50 biodiesel mandate next year, with implementation reportedly reaching about 80% so far. In India, refiners imported a record volume of soyoil in August and the highest volume of palm oil in six months ahead of the festive season, providing additional demand support.

Upside, however, was limited by a stronger ringgit and softer crude oil prices. Export prospects also remained subdued, with cargo surveyors estimating that Malaysian palm oil shipments in August fell between 6.5% and 14.9% from July. At the same time, ample supply continued to weigh on the market, as Malaysian palm oil inventories climbed to a five-month high in July.

Export demand expanded for a second consecutive month, reversing the declines seen throughout Q2. Purchasing activity rose sharply, enabling firms to rebuild input inventories at the quickest pace in nearly three years. At the same time, better supplier performance and increased use of local vendors helped alleviate supply pressures.

Input cost inflation eased to its lowest level since February, despite higher energy and construction material prices, and selling price inflation remained contained amid intense competition. Employment declined for the second time in three months, as firms stayed cautious on hiring in the face of regional uncertainty, although business confidence strengthened to its highest level since April.

In contrast, purchasing activity contracted at the steepest rate in nearly three years, as material shortages, cash-flow constraints, delayed payments, and disruptions in the Strait of Hormuz weighed heavily on buying. At the same time, price pressures intensified for the first time since May, with both input costs and output charges rising at a quicker pace. Despite these headwinds, business confidence climbed to its highest level since June 2022, underpinned by expectations of new projects, growth in tourism, and the opening of new branches.

Employment rose for the second consecutive month, while backlogs fell for a third month, indicating spare capacity in the sector. Supply conditions improved further, prompting firms to ramp up input purchases at the quickest rate since February. Inflationary pressures remained elevated, driven by higher material, transport and labor costs, although output price inflation slowed to its weakest pace since March. Business confidence, meanwhile, rebounded to a seven-month high.

As of August 31, total registered foreign investment amounted to USD 40.63 billion, an increase of 55.4% compared with the same period last year. This figure covers newly registered capital, additional capital for existing projects, and capital contributions and share purchases by foreign investors.

In parallel, State budget investment disbursements rose 18.5% year-on-year to VND 546.8 trillion over the same period, equivalent to 50.5% of the annual plan. Of this total, locally managed investment reached VND 470.9 trillion, up 20.4%, while centrally managed investment stood at VND 75.9 trillion, an increase of 7.9%.

The improvement in August suggests a broad-based strengthening in economic momentum across both manufacturing and services. The three-point increase in the index indicates that output and new business likely picked up pace compared with the previous month, underscoring resilient demand conditions in the UAE economy.

With the Composite PMI now at its highest level in at least two months, the August data will be closely watched by investors and policymakers as a sign that the UAE’s non-oil private sector is gaining traction in the second half of 2026.

The uptick in the composite PMI suggests that underlying demand conditions in the Kingdom improved over the month, with businesses reporting a faster pace of activity than in July. While still indicative of moderate, rather than rapid, expansion, the move higher from 53.1 to 53.8 points to a strengthening private-sector environment as companies adapt to evolving domestic and external conditions.

With August’s reading reinforcing a positive trend in 2026, the Riyad Bank Composite PMI will remain a closely watched gauge of Saudi Arabia’s non-oil economic trajectory, offering insight into how effectively the private sector is sustaining momentum amid the broader diversification efforts underway in the country.

The latest USDA report left the US corn crop rated 57% good-to-excellent as of August 30. However, recent field tours have revealed mixed results and, in some regions, yields below expectations, fueling uncertainty about the ultimate size of this year’s harvest.

On the demand side, Chinese officials are reportedly in talks to purchase US agricultural commodities, including corn, ahead of a potential Trump–Xi meeting. Global supply risks also remain in focus: the EU projects its 2026 maize crop to fall to nearly a 20‑year low, while ongoing disruptions to Black Sea grain shipments continue to threaten export flows.

Ahead of the USDA’s weekly export sales report, market participants expect US old-crop corn sales of up to 200,000 metric tons and new-crop commitments of as much as 1.6 million tons, keeping the spotlight firmly on international demand.

At the same time, traders closely monitored the yen after its sharp rally amid speculation about a rate check and potential official intervention. A stronger yen pressures earnings for Japan’s export-oriented sectors and makes domestic assets more expensive for foreign investors. Financial stocks led the rebound, with notable gains from Mitsubishi UFJ (2.6%), Sumitomo Mitsui (2.7%) and Mizuho Financial (2.3%).

The broader index was chiefly supported by non-energy minerals, transportation, producer manufacturing, and financials. Investors, however, remained cautious ahead of Friday’s release of July retail sales figures, following an acceleration in June. Upside was also limited by rising oil prices, which heightened inflation worries and strengthened expectations of an interest rate hike amid escalating tensions in the Middle East.

Among the top performers were DFI Retail Group (+3.4%), Hongkong Land (+2.8%), Yangzijiang Shipbuilding (+1.7%), DBS Group (+1.3%), and OCBC (+1.2%).

The higher auction yield suggests investors are demanding greater compensation to hold long-dated Japanese debt, which can reflect changing expectations around inflation, interest rates, or fiscal conditions. The shift from 3.937% to 4.080% also underscores how sensitive ultra-long maturities are to evolving market sentiment, as even modest percentage changes can significantly affect financing costs over a 30-year horizon.

Market participants will be watching upcoming JGB auctions closely to gauge whether this upward trend in long-term yields persists, as it could have implications for government funding strategies and broader financial conditions in Japan.

On the domestic front, Destry Damayanti was sworn in as governor of Bank Indonesia on Wednesday, becoming the first woman to lead the central bank. During her confirmation hearing, she pledged to keep monetary policy agile in responding to economic challenges, while prioritizing stability and fostering growth.

Upside momentum was limited, however, by concerns that both headline and core inflation could edge higher in the coming months. These worries stem from rising input and logistics costs, a rebound in energy prices, and potential El Niño-related disruptions to food supply.

All sectors advanced, led by basic materials, non-cyclical stocks, and energy. Early notable gainers included Charoen Pokphand (up 7.6%), Adaro Andalan (4.0%), Bukit Asam (3.7%), and Medco Energi (2.1%).

While the RBNZ signaled that further rate hikes may still be needed, its forward guidance was seen as more cautious than markets had expected, prompting a sharp selloff in the kiwi. Governor Anna Breman also emphasized that there is no predetermined path for monetary policy and that the timing of any additional rate increases remains highly uncertain.

At the same time, Bank of Japan board member Hajime Takata on Wednesday opened the door to larger-than-usual or consecutive interest rate hikes to rein in mounting inflationary pressures. BOJ Governor Kazuo Ueda also remarked on Tuesday that policymakers must pay closer attention to upside risks to prices when setting monetary policy, signaling that a rate increase is likely later this month.

Over the first eight months of 2026, total industrial production was up 11.4% compared with the same period a year earlier, representing the strongest growth for this timeframe in many years. On a monthly basis, industrial output rose 1.2%.

Imports surged 37.9% year-on-year to USD 54.91 billion, while exports increased 26% to USD 54.8 billion. Over the first eight months of the year, the country recorded a cumulative trade deficit of USD 20.46 billion. During this period, exports rose 22.4% to USD 374.84 billion, whereas imports climbed 35.3% to USD 395.30 billion.

Even so, markets are still pricing in roughly a two-thirds probability of a Fed rate increase later this month, following Chair Kevin Warsh’s hawkish remarks on Friday. Investors are now awaiting the latest weekly jobless claims figures on Thursday and Friday’s August nonfarm payrolls report for additional clarity on the strength of the US labor market. Elsewhere, oil prices paused their recent rally after President Donald Trump suggested that the latest attacks on Iran would be short-lived, helping to temper inflation concerns.

Employment rose for the fourth consecutive month, marking the longest period of job creation in more than five and a half years. At the same time, input cost inflation picked up but remained relatively mild, while prices charged for goods and services increased at their slowest rate since January, pointing to only limited pass-through of higher input costs to final prices.

Sentiment was further buoyed after President Donald Trump said that any renewed US military action against Iran would likely be short-lived, alleviating fears of a prolonged conflict in the Middle East. Softer oil prices also helped reduce inflation concerns and pressure from rising energy costs.

Technology and financial stocks posted gains, lending broader support to the market. By contrast, Shein remained under pressure, with its shares sliding more than 5% on Wednesday to HK$46 in their second day of trading in Hong Kong.

Among notable movers, Tencent rose 0.4%, Lenovo 1.1%, MiniMax 1.0%, Akeso 3.0%, and AIA 1.8%.

At the same time, recent figures showed the economy performed better than expected in the second quarter, reinforcing expectations that the Reserve Bank of Australia could resume tightening after raising rates three times already this year. Following the GDP release, markets lifted the probability of a rate increase this month to 58%, up from 49%, while a move in the cash rate to 4.60% by November is now fully priced in. The increasingly hawkish policy outlook has been further supported by renewed fighting in the Gulf, which pushed oil prices higher and stoked fresh concerns about inflation.