{"id":66516,"date":"2026-08-14T05:08:53","date_gmt":"2026-08-14T09:08:53","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-hormuz-drone-strike-and-chinas-credit-slowdown\/66516\/"},"modified":"2026-08-14T05:08:53","modified_gmt":"2026-08-14T09:08:53","slug":"global-markets-react-to-hormuz-drone-strike-and-chinas-credit-slowdown","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-hormuz-drone-strike-and-chinas-credit-slowdown\/66516\/","title":{"rendered":"Global Markets React to Hormuz Drone Strike and China\u2019s Credit Slowdown"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Geopolitical Tensions Spike<\/strong>: An <strong>oil tanker<\/strong> was struck by an <strong>IRGC drone<\/strong> in the <strong>Strait of Hormuz<\/strong> after allegedly attempting to transit without Iranian authorization, raising immediate concerns over global energy security.<\/li>\n<li><strong>China Credit Growth Weakens<\/strong>: New <strong>Yuan Loans<\/strong> for July fell to <strong>CNY 10.38T<\/strong>, missing estimates of <strong>CNY 10.62T<\/strong>, while <strong>M2 Money Supply<\/strong> growth slowed to <strong>7.7%<\/strong>, signaling cooling domestic demand.<\/li>\n<li><strong>Record Japanese Equity Purchases<\/strong>: Japanese corporations logged their <strong>highest weekly equity purchases on record<\/strong>, primarily driven by memory giant Kioxia (<a href=\"\/stock\/285A\">285A<\/a>) completing a massive <strong>\u00a5800 billion ($5 billion) share buyback<\/strong>.<\/li>\n<li><strong>Diplomatic Push in Pakistan<\/strong>: Pakistan\u2019s Foreign Minister urged the <strong>US Ambassador<\/strong> to implement the <strong>Iran Memorandum of Understanding (MoU)<\/strong> &quot;in letter and spirit&quot; to prevent further regional escalation.<\/li>\n<\/ul>\n<h2>Middle East Conflict Escalates in Strategic Waterway<\/h2>\n<p>The <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> reportedly struck an <strong>oil tanker<\/strong> with a drone on Friday as it attempted to pass through the <strong>Strait of Hormuz<\/strong>. According to maritime authorities, the vessel was targeted for failing to obtain <strong>Iranian authorization<\/strong> for transit. While the <strong>United Kingdom Maritime Trade Operations (UKMTO)<\/strong> confirmed the vessel sustained <strong>minor damage<\/strong> and the crew is safe, the incident has intensified the effective blockade of the world\u2019s most critical oil chokepoint.<\/p>\n<p>In response to the rising hostilities, <strong>Pakistan\u2019s Foreign Minister Ishaq Dar<\/strong> met with the <strong>US Charg\u00e9 d\u2019Affaires<\/strong> to advocate for the immediate implementation of the <strong>Islamabad MoU<\/strong>. This diplomatic framework, brokered with the help of <strong>Qatar<\/strong>, aims to provide a 60-day window for technical negotiations to resolve the ongoing maritime standoff. <em>Market analysts warn that continued disruptions in the Strait could significantly impact global crude supplies, which the IEA already forecasts could fall by 4.3 million barrels per day this year.<\/em><\/p>\n<h2>China\u2019s July Financial Data Misses Expectations<\/h2>\n<p>Fresh data from the <strong>People\u2019s Bank of China (PBOC)<\/strong> reveals a sharper-than-expected slowdown in credit expansion for July. <strong>New Yuan Loans<\/strong> reached <strong>CNY 10.38T<\/strong>, trailing the forecasted <strong>CNY 10.62T<\/strong>. Furthermore, the <strong>M2 Money Supply<\/strong> grew by <strong>7.7%<\/strong> year-over-year, missing the <strong>7.9%<\/strong> estimate and marking a decline from the <strong>8.0%<\/strong> recorded in June.<\/p>\n<p><strong>Aggregate Financing<\/strong>, a broad measure of credit and liquidity, stood at <strong>CNY 22.25T<\/strong>, slightly above the <strong>21.925T<\/strong> estimate but reflecting a cumulative decrease of <strong>1.74 trillion yuan<\/strong> compared to the same period last year. <em>The data suggests that private sector credit demand remains subdued despite government efforts to apply appropriately accommodative monetary policies.<\/em><\/p>\n<h2>Kioxia Buyback Powers Record Japanese Inflows<\/h2>\n<p>In the equity markets, Japanese corporations recorded their <strong>largest-ever weekly purchase of shares<\/strong>, a surge largely attributed to Kioxia (<a href=\"\/stock\/285A\">285A<\/a>). The memory chip manufacturer successfully completed its <strong>\u00a5800 billion ($5 billion)<\/strong> share buyback program on August 10, repurchasing <strong>16.1 million shares<\/strong> in just ten days.<\/p>\n<p>This aggressive capital return initiative represents approximately <strong>2.9% of Kioxia&#39;s outstanding shares<\/strong> and was executed at an average price of <strong>\u00a549,586 per share<\/strong>. The move has bolstered investor sentiment in the Japanese tech sector, even as Kioxia (<a href=\"\/stock\/285A\">285A<\/a>) reported first-quarter earnings that slightly missed analyst forecasts for operating profit. <em>The company is currently benefiting from a surge in demand for high-performance memory driven by the global AI infrastructure boom.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Geopolitical Tensions Spike: An oil tanker was struck by an IRGC drone in the Strait of Hormuz after 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