A day of major economic maneuvering is underway across Asia, as South Korea unveils a massive spending plan to combat a slowdown, India’s prime minister arrives in Japan to secure a multi-billion dollar investment package, and gold continues its relentless climb toward a new record high.
These strategic shifts are all playing out under the long shadow of the US Federal Reserve, as a key inflation reading today could determine the path of global markets for the rest of the year.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
South Korea plans 8.1 percent budget hike to aid growth amid tariffs
In a move to revive an economy under pressure, South Korea’s new liberal government has proposed a hefty 8.1 percent expansion of its annual budget for 2026. The 728 trillion won ($522 billion) plan represents a dramatic ramp-up in spending, more than triple the 2.5 percent increase in 2025.
President Lee Jae Myung said the budget will serve as a “priming pump” to drive recovery and growth, with a top priority being a significant boost in investment in artificial intelligence.
The expansionary fiscal policy marks a sharp contrast to the previous administration and will be funded by a record 232 trillion won in new bond issuance.
Gold climbs toward record high as traders brace for key inflation data
Gold is heading for another weekly gain, pushing it tantalizingly close to a new record high. The precious metal was trading steadily around $3,415 an ounce early Friday in Asia, as investors braced for a crucial US inflation reading.
The personal consumption expenditures (PCE) print, the Fed’s preferred gauge, is forecast to accelerate, a scenario that could complicate the central bank’s path to cutting interest rates.
However, recent comments from Fed Governor Christopher Waller, who signaled support for a September rate cut, have kept the bulls in charge. Swaps markets are now pricing in around an 85 percent chance of a rate cut next month.
India’s Modi seeks over $68 billion in Japan investment, security pact
Indian Prime Minister Narendra Modi is in Japan for a two-day trip, where he is expected to secure investment pledges of more than 10 trillion yen ($68 billion) as he seeks to bolster India’s economy against the sting of soaring US tariffs.
According to officials in New Delhi, the two nations are also expected to sign a significant economic security pact covering cooperation on semiconductors, critical minerals, and artificial intelligence.
Modi is scheduled to meet his counterpart, Shigeru Ishiba, before traveling to China for a major security summit, where he is expected to hold a rare bilateral meeting with President Xi Jinping.
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