August 2025

• Global markets experienced increased volatility in August as investors reassessed economic growth prospects following weaker manufacturing and consumer data across several major economies.
• Technology and artificial intelligence-related sectors remained relatively resilient despite broader market fluctuations.
• Central banks continued gradually easing monetary policy as inflation moved closer toward long-term targets.
• Bond yields declined further amid growing expectations for additional interest rate cuts.
• Chinese economic weakness and subdued property sector activity continued affecting broader Asian sentiment.
• Commodity prices weakened due to softer industrial demand expectations and slowing global growth.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed performance during August as semiconductor-related strength in Taiwan and South Korea offset continued weakness in Chinese equities.

Chinese authorities introduced further support measures for the property sector and consumer spending, though investor confidence remained cautious due to weak domestic demand and slowing industrial growth.

Europe

European equities weakened modestly during August as slowing manufacturing activity and softer consumer demand increased concerns regarding economic growth across the region.

However, expectations for further European Central Bank interest rate cuts helped support broader financial conditions and limit market declines.

United States

U.S. equities experienced periods of heightened volatility during August as investors evaluated weaker economic data alongside continued strength within large-cap technology and artificial intelligence-related companies.

Markets increasingly anticipated additional Federal Reserve policy easing following softer labour market and inflation data.

United Kingdom

UK equities delivered relatively stable performance during August as lower inflation and improving borrowing conditions supported investor sentiment.

Economic growth remained relatively modest, though easing monetary policy expectations helped support domestic financial markets.

Japan

Japanese equities experienced mixed performance during August as stronger yen conditions created pressure for exporters despite continued strength in technology-related sectors.

Investors remained focused on future Bank of Japan policy adjustments and their potential impact on currency markets and corporate earnings.

Emerging Markets

Emerging markets delivered mixed results during August as easing global financial conditions supported capital flows while weaker Chinese growth weighed on broader sentiment.

Technology-oriented Asian economies remained among the strongest-performing regions due to sustained semiconductor and artificial intelligence infrastructure demand.

Commodities

Commodity prices weakened during August as slowing manufacturing activity and softer Chinese demand reduced expectations for industrial consumption growth.

Oil prices declined modestly amid weaker global demand expectations, while industrial metals remained under pressure due to subdued construction and manufacturing activity. Gold prices remained elevated due to lower interest rate expectations and continued geopolitical uncertainty.