China's CSI 300 index futures main contract (IF) rose 0.96% at the morning session close; SSE 50 index futures main contract (IH) rose 1.44%; CSI 500 (IC) rose 2.39%; CSI 1000 (IM) rose 2.94%.

The ruling Liberal Democratic Party’s General Council unanimously approved Prime Minister Sanae Takaichi’s large-scale food consumption tax cut, clearing the way for cabinet approval later Wednesday; implementation is slated to begin April 2027 after review in a special Diet session. The plan cuts the food consumption tax rate from 8% to 1% over two years and adds a further 1% rebate/subsidy, effectively creating a zero tax burden on food purchases. The measure is expected to create about ¥5 tln (~$31.7 bln) in fiscal revenue shortfall, increasing pressure to identify funding sources.

A South Korean shareholder group has filed criminal complaints accusing the CEOs of Samsung Electronics and SK Hynix of breaching shareholder trust by approving bonus payments outside collective bargaining constraints and creating a payment mechanism that improperly consumed company assets. The group said on Aug. 5 it submitted complaints on July 22 to the National Police Agency’s National Investigation Office against Samsung co-CEOs Jun Young-hyun and Roh Tae-moon and SK Hynix CEO Kwak No-jung. The cases have been referred to the Gyeonggi Nambu Provincial Police Agency’s first and second investigation divisions, which have opened investigations under the Specific Economic Crimes Aggravated Punishment Act.