A REUTERS SURVEY showed most economists expect the Bank of Israel's MPC to pause rate cuts on Tuesday, though 6 of 14 respondents forecast a further 25bp reduction to 3.25%. The MPC cut rates by 25bp in May and July; the policy rate is currently 3.5%, its lowest since end-2022. Annual inflation is 1.5%—inside the 1–3% target band—and a stronger shekel is seen as easing price pressures. Bond-market-implied inflation over the next year is priced to remain stable.

Al Jazeera cited U.S. officials saying Iran's missile strike on U.S. bases in Jordan shows Iran is no longer as strong as it once was.

China A-shares closed higher after an early dip: Shanghai Composite +0.86%, Shenzhen Composite Index +0.44%, ChiNext +0.42%. Short-drama-related names led gains — digital media, cinema chains, AI training-data and short-drama interactive game stocks produced multiple 20% limit-ups; Mango Excellent Media and Zhongwen Online both hit 20% limits, while Zhongguang Tianze, Shanghai Film and Bona Film Group also reached limit-up. AI chip names recovered from a weak open: Juxin Technology +13%, Xingchen Technology +12%, Rockchip hit limit-up, Kunlun Wanwei +8%. Liquid-cooled server plays rallied with several stocks, including Inspur Information, on limit-up. Other strong sectors: components, LiDAR, consumer electronics, semiconductors, compute/AI infrastructure and satellite internet. Lagging sectors included precious metals, recombinant protein, PV equipment, innovative drugs, plantation, chemical pharmaceuticals and white spirits. Turnover across Shanghai and Shenzhen totaled CNY2.13 trillion, up ~CNY29.3 billion versus the prior session; about 3,000 stocks rose and ~2,100 fell.