Asian Market Turmoil: China Manufacturing Contraction, Yen Intervention, and KOSPI Record Rebound

글로벌 시장 | Sat Aug 01 2026 00:00:00 GMT+0000 (Coordinated Universal Time) | 6 sources

Key Asian market events including China's unexpected manufacturing PMI contraction, joint US-Japan yen-buying intervention, and South Korea's KOSPI posting its largest-ever daily gain.

Analysis

[China Manufacturing PMI] unexpectedly slipped into contraction in July ^[1]^[2]^[4]

Official manufacturing PMI fell to 49.2 in July from 50.3 in June
New orders sub-index dropped to 48.5
the lowest since 2023
Construction PMI hit a record low of 47.0
composite PMI at 49.3
Weak domestic demand and typhoon-related production disruptions

[US Treasury & Bank of Japan] conducted joint direct yen-buying intervention

New York Fed sold euros to purchase yen
Unusual joint market intervention by US and Japanese authorities
Triggered yen strength rebound []

[KOSPI] posted the largest-ever daily rebound for Korean stocks

KOSPI surged 14%
marking the largest-ever daily gain
SK Hynix posted a record rebound
Samsung Electronics jumped
Foreign buying and short-covering led the rally
Leveraged ETF rebalancing amplified the gains []

[Indian Consumer Companies] planned additional price hikes ahead of festive season

Price increases on products including toothpaste
tires
and paints
Second consecutive quarter of price hikes
Prolonged Middle East conflict pushing up raw material costs
Concerns over persistent inflationary pressure []

[China Policy Outlook] signaled accelerated fiscal spending and stimulus for the second half ^[5]

Policymakers officially acknowledged "economic difficulties and challenges"
Pledged to accelerate fiscal spending and introduce "incremental policies"
Exports to the US turned negative for the first time in months
Front-loading momentum ahead of US tariff hikes has faded

Asian Market Turmoil: China Manufacturing Contraction, Yen Intervention, and KOSPI Record Rebound

Analysis

Sources