{"id":71608,"date":"2026-09-09T20:08:16","date_gmt":"2026-09-10T00:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-market-update-us-business-confidence-in-china-rebounds-amid-geopolitical-strains\/71608\/"},"modified":"2026-09-09T20:08:16","modified_gmt":"2026-09-10T00:08:16","slug":"global-market-update-us-business-confidence-in-china-rebounds-amid-geopolitical-strains","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-market-update-us-business-confidence-in-china-rebounds-amid-geopolitical-strains\/71608\/","title":{"rendered":"Global Market Update: US Business Confidence in China Rebounds Amid Geopolitical Strains"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US business confidence in China has rebounded<\/strong> from record lows, with <strong>95% of US companies<\/strong> now viewing their China operations as critical to global competitiveness.<\/li>\n<li><strong>Gulf Development and Singtel (<a href=\"\/stock\/Z74\">Z74<\/a>)<\/strong> have formed a strategic partnership to build a new <strong>submarine cable<\/strong> connecting Thailand and Singapore to meet surging AI-driven data demand.<\/li>\n<li><strong>Japanese investors made their largest shift toward overseas equities<\/strong> in five months, pouring <strong>\u00a51.3 trillion ($8.45 billion)<\/strong> into foreign shares while cutting bond holdings.<\/li>\n<li><strong>Trump\u2019s top advisers<\/strong> have privately warned that the <strong>U.S.-Iran war<\/strong> could last through the end of his term in <strong>2029<\/strong>, contradicting the President&#39;s public claims of an immediate resolution.<\/li>\n<li><strong>Japan&#39;s 10-year government bond yield<\/strong> hit <strong>3%<\/strong> for the first time in three decades, signaling a structural shift that may reduce Japanese support for <strong>U.S. Treasuries<\/strong>.<\/li>\n<\/ul>\n<h2>US-China Commercial Relations Show Resilience<\/h2>\n<p>American business sentiment in China is seeing a notable recovery from previous record lows. According to the latest <strong>US-China Business Council<\/strong> member survey, a resounding <strong>95% of respondents<\/strong> stated that their China operations are essential for maintaining global competitiveness. While geopolitical tensions and tariffs continue to impact roughly <strong>72% of firms<\/strong>, the narrative has shifted toward adaptation and selective investment rather than a broad decoupling.<\/p>\n<p>Companies are increasingly using lessons learned in the Chinese market to fund and inform their global expansion. Despite the ongoing trade truce, many firms report that <strong>U.S. export controls<\/strong> are creating a perception of American suppliers as &quot;unreliable,&quot; leading some to seek alternative supply chain routes. Nevertheless, the scale and speed-to-market offered by China remain unparalleled for major U.S. multinationals.<\/p>\n<h2>Regional Connectivity: Gulf Development and Singtel Partnership<\/h2>\n<p>In a move to bolster Southeast Asia&#39;s digital backbone, <strong>Gulf Development<\/strong> and <strong>Singtel (<a href=\"\/stock\/Z74\">Z74<\/a>)<\/strong> have entered a strategic partnership to develop a new submarine cable link between <strong>Thailand and Singapore<\/strong>. This project is designed to address the explosive growth in cross-border data traffic, largely driven by the regional <strong>AI boom<\/strong> and the expansion of hyperscale data centers.<\/p>\n<p>The partnership follows <strong>Singtel&#39;s<\/strong> recent &quot;capital recycling&quot; initiative, where it sold a <strong>2.8% stake<\/strong> in Gulf Development for approximately <strong>S$1 billion ($773 million)<\/strong>. Despite the divestment, Singtel maintains a <strong>4.95% stake<\/strong> in the Thai energy giant and continues to collaborate on major infrastructure projects, including the <strong>GSA data center venture<\/strong>.<\/p>\n<h2>Japan Security Flows: A Rotation into Equities<\/h2>\n<p>Fresh data from the <strong>Ministry of Finance<\/strong> reveals a significant shift in Japanese investment patterns for the period ending September 4, 2026. Japanese investors became net buyers of <strong>foreign stocks<\/strong>, pouring in <strong>\u00a51.3 trillion<\/strong>, the highest level since March. Conversely, they reduced their exposure to foreign bonds, selling a net <strong>\u00a5111.9 billion<\/strong> as global yields rose and domestic debt became more attractive.<\/p>\n<p>Foreign investors also showed strong interest in the Japanese market, purchasing <strong>\u00a5690 billion<\/strong> in Japanese stocks. This comes as the <strong>Nikkei 225<\/strong> index climbed above <strong>65,600<\/strong>, supported by a rebound in technology and AI-related shares like <strong>SoftBank Group (<a href=\"\/stock\/SFTBY\">SFTBY<\/a>)<\/strong> and <strong>Fujikura<\/strong>. The strengthening yen and rising domestic yields are forcing a recalibration of the &quot;carry trade,&quot; with investors closely watching the <strong>Bank of Japan\u2019s<\/strong> next moves.<\/p>\n<h2>Geopolitical Risks: Prolonged Conflict in the Middle East<\/h2>\n<p>Internal reports from the White House suggest a growing divide between <strong>President Trump\u2019s<\/strong> public optimism and his advisers&#39; private assessments of the <strong>Iran conflict<\/strong>. While Trump has publicly stated the war would end &quot;immediately&quot; after the November midterms, top advisers\u2014including <strong>Vice President JD Vance<\/strong> and <strong>Secretary of State Marco Rubio<\/strong>\u2014have warned that Tehran&#39;s resistance could prolong the war through <strong>2029<\/strong>.<\/p>\n<p>This potential for a long-term conflict has kept a structural risk premium on <strong>Brent <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">crude oil<\/a><\/strong>, which recently touched <strong>$120 per barrel<\/strong>. Market analysts suggest that traders are increasingly discounting the President&#39;s timeline in favor of a &quot;long-term economic siege&quot; base case. The conflict continues to weigh on global risk sentiment, contributing to inflationary pressures and complicating the path for central bank rate cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US business confidence in China has rebounded from record lows, with 95% of US companies now viewing their 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