{"id":71209,"date":"2026-08-31T22:08:16","date_gmt":"2026-09-01T02:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/"},"modified":"2026-08-31T22:08:16","modified_gmt":"2026-09-01T02:08:16","slug":"global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/","title":{"rendered":"Global Markets React to China PMI Growth and Japan-U.S. Currency Talks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#China_Manufacturing_Surges_Past_Expectations\" >China Manufacturing Surges Past Expectations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#Shein_Stumbles_in_Hong_Kong_Debut\" >Shein Stumbles in Hong Kong Debut<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#Japan-US_Tensions_Over_Yen_and_Interest_Rates\" >Japan-U.S. Tensions Over Yen and Interest Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#South_Koreas_Strategic_%22Super_Budget%22\" >South Korea\u2019s Strategic &quot;Super Budget&quot;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-china-pmi-growth-and-japan-u-s-currency-talks\/71209\/#Geopolitical_and_Regional_Economic_Updates\" >Geopolitical and Regional Economic Updates<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>China\u2019s manufacturing sector returned to growth<\/strong> in August, with the <strong>RatingDog Manufacturing PMI climbing to 51.5<\/strong>, significantly beating market expectations of 51.0.<\/li>\n<li><strong>Shein (<a href=\"\/stock\/SHEIN\">SHEIN<\/a>) shares plummeted 7%<\/strong> during their highly anticipated <strong>Hong Kong market debut<\/strong>, valuing the fast-fashion giant at approximately <strong>$26.5 billion<\/strong>\u2014a sharp decline from its peak private valuation.<\/li>\n<li><strong>Japan\u2019s Finance Minister Satsuki Katayama<\/strong> met with <strong>U.S. Treasury Secretary Scott Bessent<\/strong> at the G20 summit, where Bessent pressured Japan to <strong>raise interest rates<\/strong> and move toward fiscal sustainability to support the weakening yen.<\/li>\n<li><strong>South Korea unveiled a record 821 trillion won ($615 billion) budget<\/strong> for 2027, prioritizing the <strong>semiconductor industry<\/strong> and strategic defense programs, including nuclear-powered submarines.<\/li>\n<li><strong>Australia\u2019s building approvals fell 3.6% in July<\/strong>, while the nation\u2019s <strong>Q2 current account deficit narrowed to A$27.2 billion<\/strong>, slightly better than the A$30.0 billion forecast.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"China_Manufacturing_Surges_Past_Expectations\"><\/span>China Manufacturing Surges Past Expectations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>China\u2019s industrial activity showed renewed vigor in August as the <strong>RatingDog General Manufacturing PMI rose to 51.5<\/strong>, up from 50.9 in July. This reading marks the fastest pace of expansion in three months, driven by a surge in <strong>new export orders<\/strong> and robust domestic demand. Analysts noted that the data suggests Beijing\u2019s recent stimulus measures may be starting to stabilize the world\u2019s second-largest economy, though employment remained relatively flat.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Shein_Stumbles_in_Hong_Kong_Debut\"><\/span>Shein Stumbles in Hong Kong Debut<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Fast-fashion powerhouse Shein (<a href=\"\/stock\/SHEIN\">SHEIN<\/a>) saw its shares drop as much as <strong>10% in early trading<\/strong> before settling at a <strong>7% loss<\/strong> on its first day on the Hong Kong Stock Exchange. The IPO, which raised <strong>$1.74 billion<\/strong>, reflects investor caution regarding global trade tensions and shifting tariff regulations in the U.S. and Europe. The company\u2019s current valuation of <strong>$26.5 billion<\/strong> is a fraction of the <strong>$100 billion<\/strong> valuation it achieved in a 2022 funding round.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Japan-US_Tensions_Over_Yen_and_Interest_Rates\"><\/span>Japan-U.S. Tensions Over Yen and Interest Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the sidelines of the G20 meeting in Asheville, North Carolina, <strong>Finance Minister Satsuki Katayama<\/strong> and <strong>U.S. Treasury Secretary Scott Bessent<\/strong> held their first face-to-face talks since July\u2019s joint currency intervention. Bessent signaled that the U.S. expects the <strong>Bank of Japan (BOJ)<\/strong> to &quot;do the right thing&quot; by raising interest rates to combat the yen\u2019s slide toward the <strong>160-per-dollar level<\/strong>. Katayama also used the G20 platform to criticize <strong>arbitrary export controls<\/strong>, calling them harmful to the global economy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"South_Koreas_Strategic_%22Super_Budget%22\"><\/span>South Korea\u2019s Strategic &quot;Super Budget&quot;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The South Korean government proposed a massive <strong>821 trillion won budget for 2027<\/strong>, a significant portion of which is earmarked for high-tech sectors. The plan includes a <strong>2.6 trillion won special fund<\/strong> for the semiconductor industry and <strong>3.4 trillion won<\/strong> for strategic weapons, including a controversial <strong>nuclear-powered submarine program<\/strong>. Budget Minister Choi Sang-mok emphasized that these investments are critical for maintaining South Korea\u2019s competitive edge in the global supply chain.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_and_Regional_Economic_Updates\"><\/span>Geopolitical and Regional Economic Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Eastern Europe, <strong>Russian air strikes on Kyiv<\/strong> killed three people and injured five, while Ukrainian drone attacks reportedly damaged civilian infrastructure in Russia\u2019s <strong>Samara region<\/strong>. Meanwhile, in the Pacific, <strong>Australia\u2019s economic data<\/strong> presented a mixed picture; while <strong>building approvals fell 3.6%<\/strong>, the <strong>net exports contribution to GDP<\/strong> remained positive at 0.1, providing some support for the Australian Dollar (<a href=\"\/stock\/AUDUSD\">AUD\/USD<\/a>) as it navigates a complex interest rate environment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s manufacturing sector returned to growth in August, with the RatingDog Manufacturing PMI climbing to 51.5, significantly beating [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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