South Korea's finance ministry on Tuesday raised its 2026 GDP growth forecast to 3%, one percentage point higher than its prior estimate, citing a semiconductor-sector "supercycle" and eased Middle East-related uncertainty. The revision, published in the ministry's H2 2026 economic policy plan, is above the IMF/OECD/ADB consensus of 2.6%. First Vice Minister Lee Hyoung-il said other agencies relied on March–April data, while the ministry's assessment uses more recent data showing export strength

Japan’s push to steer more national pension assets into domestic markets risks redirecting billions into Japan and trimming fee revenue for foreign managers. Finance Minister Katayama said last Friday the government aims to substantially raise the national pension fund’s allocation to domestic assets, prompting investor bets that billions of dollars could flow into Japanese markets. The Government Pension Investment Fund (GPIF) manages $1.8 trillion; roughly $93 billion of overseas exposure is almost entirely run by foreign managers. As of the fiscal year to March 2025, GPIF relies on 35 external managers for overseas mandates; those firms collectively earned about JPY21bn (~$130m) in fees, and some global managers could face losses of tens of millions of dollars in management fees. Broadridge Asia-Pacific head of growth solutions Yoon Ng says passive foreign managers may come under pressure while domestically strong active managers stand to benefit.

Barclays analysts said political uncertainty may push UK government bond yields higher. Keir Starmer stepped down in June and the UK is awaiting a new prime minister; if unchallenged, Andy Burnham is widely expected to succeed him on July 20. Analysts warned the UK’s weak public finances may pose a challenge for the incoming prime minister. Escalating Middle East tensions have lifted global bond yields, with UK gilts rising more than eurozone peers.