US Treasuries fell after British media reported that, if inflation proves strong, Fed chair Kevin Warsh may be prepared to hike rates in September. Alphabet (GOOG.O) launched a $10bn investment-grade dollar bond offering.

CITIC Securities says retail leverage in South Korean equities has been rapidly unwound but risks remain. Brokerage margin balances fell 10% in a single day on July 31 — the largest drop this year — indicating on-exchange leverage is still being cut quickly. Retail forced liquidations on July 30–31 exceeded 100 bln won per day; the liquidation rate remains about 7–8%, well above the roughly 1% level seen in stable markets. Korea’s stabilization fund is limited in size and National Pension Service intervention carries moral hazard. CITIC expects market volatility to remain relatively elevated.

Japan Meteorological Agency said at about 16:18 local time on the 6th a magnitude-4.0 earthquake struck the Amakusa and Ashikita areas of Kumamoto Prefecture. Maximum JMA seismic intensity was 3 and focal depth was 10 km.