Samsung Electronics and SK Hynix plan to increase shipments of 8-layer HBM4 memory to NVIDIA in H2, a move driven by NVIDIA's supply strategy to stabilize supply across HBM types and manage product thermal profiles. The 8-layer configuration is likely to become the flagship for next-generation HBM4E.

Majority of sell-side and macro forecasters expect the Bank of Korea to raise rates by 25bps, but policy paths diverge widely. Societe Generale, Morgan Stanley, iM Securities, DBS Group, Nomura, Mitsubishi UFJ and a Reuters survey (18 of 35 economists) all flag a 25bp move. DBS expects an additional 25bps in Q4 to 3.25% and to hold through the end of next year. Societe Generale says the governor signaled possible consecutive hikes in August; Morgan Stanley cites a supportive macro backdrop; iM Securities warns the cost of delaying to October is rising. Nomura and Mitsubishi UFJ point to core inflation, strong semiconductor exports and a firm housing market as further upward pressure. Citigroup projects a 25bp hike followed by increases in November and next February to 3.5%, and says tightening could peak nearer 3.75%. By contrast, HSBC, Eugene Investment Securities and Barclays expect rates to be left unchanged at 2.75%; a Korea Financial Investment Association survey shows 79% of bond-market experts expect no change while 20% expect a hike.

Tang Daosheng, group senior executive vice president and CEO of Tencent’s Cloud and Smart Industries Group, wrote in an internal publication addressing claims Tencent has tagged on AI. He said it is impossible not to be anxious, that the HunYuan large model has undergone multiple reconstructions and HunYuan Hy3 performs strongly among models with comparable parameter counts, but warned the The company’s overall compute capacity is severely insufficient, slowing model training and product development and causing material impact. He added the AI second half is only beginning and that sustained effort is required to capture recurring new opportunities.

Interest Rate Hikes 1. Societe Generale: The Bank of Korea is expected to raise interest rates by 25 basis points. The bank's governor signaled in July that a second rate hike in August is possible. 2. Morgan Stanley: The Bank of Korea is expected to raise interest rates by 25 basis points. A favorable macroeconomic backdrop is sufficient to support a further rate hike in August. 3. iM Securities: The Bank of Korea is expected to raise interest rates by 25 basis points. Waiting until October to act offers little benefit, as the cost of delaying a rate hike is rising. 4. DBS Bank: The Bank of Korea is expected to raise interest rates by 25 basis points, followed by another 25 basis point hike in the fourth quarter to 3.25%, maintaining that rate level until the end of next year. 5. Nomura Securities: The Bank of Korea is expected to raise interest rates by 25 basis points. Concerns about inflation and financial stability risks, coupled with recent strong economic growth, all point to further rate hikes. 6. Mitsubishi UFJ: The Bank of Korea is expected to raise interest rates by 25 basis points, citing core inflation, semiconductor exports and memory prices, and a robust real estate market as grounds for further rate hikes. 7. Reuters poll: The Bank of Korea is expected to raise interest rates by 25 basis points, with 18 of 35 economists supporting this forecast, while the remainder expect rates to remain unchanged at 2.75%. 8. Citibank: The Bank of Korea is expected to raise interest rates by 25 basis points, followed by further increases in November and February next year to 3.5%; the tightening力度 may be stronger than expected, with rates potentially reaching as high as 3.75%. Stay On Hold 1. HSBC: The Bank of Korea is expected to keep interest rates unchanged, as it is in no hurry to raise rates given the apparent weakening of consumption. 2. Eugene Investment & Securities: The Bank of Korea is expected to keep interest rates unchanged; maintaining the stance of "possible future rate hikes" will itself have a tightening effect. 3. A survey by the Korea Financial Investment Association indicates that the Bank of Korea is expected to maintain its current interest rate. 79% of bond market experts support this prediction, while 20% expect a rate hike. 4. Barclays Bank: The Bank of Korea is expected to maintain its current interest rate. Although the central bank's own communications have pointed to a rate hike, given the significantly tightened financial conditions, it is likely to keep rates unchanged.

Japanese 40-year government bond yield fell 2 bps to 4.13%.

The yield on Japan's 40-year government bonds fell 2.0 basis points to 4.130%.