New York Fed trading desk plans roughly $17 bln of reinvestment purchases; will not conduct reserve-management purchases from Aug. 14 through Sept. 14.

Nikkei 225 rose 0.59% to 68,713.80 on Friday, bringing the week's gain to 4.7%, after US equities climbed and softer US producer prices lifted risk appetite. Broader Topix advanced 0.51% to 4,197.20, a record closing high. US July PPI was flat MoM, reinforcing market expectations the Fed will hold rates next month and helping push the S&P 500 and Nasdaq to record closes overnight. Nomura strategist Wataru Akiyama said the US rally, falling oil and easing inflation-driven expectations of earlier Fed hikes are supporting Japanese stocks. Among Nikkei components, Nexon jumped 19.85%—its largest one-day gain since Feb 2024—Shift rose 7.57% and Nintendo gained 6.91%.

Russian Urals crude from west Russian ports to Asia normally transits the Red Sea. Compliant tankers operating under Western constraints depend on P&I clubs and war-risk cover; rising Red Sea risk has prompted insurers to tighten cover and in some cases require insured ships to avoid the Bab el-Mandeb. Sanctioned "shadow fleet" vessels, which use little Western insurance or maritime services, are not bound by those insurer no-sail constraints and can continue to use the shorter Red Sea route. The split is imposing higher insurance and rerouting costs on compliant ships—detours around the Cape of Good Hope add several weeks to voyages and materially raise freight—giving sanctioned vessels a marked transport-cost advantage.