08/09/2026

BIZ & FINANCE TUESDAY | SEPT 8, 2026

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Kospi ends at highest since late July, Nikkei up 2% SEOUL: South Korean shares rose more than 4% yesterday to notch their highest close since late July, as chipmakers rallied on optimism around strong demand for AI investments. The benchmark KospiI closed up 308.18 points, or 4.61%, at 6,995.39, its highest closing level since July 23 and the biggest daily percentage rise since Aug 20. Wall Street weakened on Friday, but the Philadelphia Semiconductor Index was a clear outperformer, gaining 3.4%. South Korea’s exports so far this year have already surpassed last year’s annual record, as the economy rides high on booming global demand for AI chips. Chipmaker Samsung Electronics rose 5.68% and peer SK Hynix gained 8.26%, leading the benchmark index higher. Among other index heavyweights, battery maker LG Energy Solution climbed 1.12%, while Hyundai Motor and sister automaker Kia Corp were up 2.48% and up 1.50%, respectively. Steelmaker Posco Holdings shed 0.45%, while drugmaker Samsung BioLogics rose 1.31%. In Tokyo, the Nikkei share average closed more than 2% higher yesterday, led by chip and AI-linked stocks after gains in US semiconductor shares. The Nikkei rose 2.12% to 66,399.84, its highest close since Aug 28. The broader Topix climbed 0.55% to 4,125.8. “With us Treasury Secretary Scott Bessent seemingly curbing bond yields and stemming the fall of the yen, market volatility has fallen,” said Mamoru Shimode, chief strategist at Resona Asset Management. “That has made it easier for stock investors to shift to risk-on mode.” Chip-testing equipment maker Advantest and chip-making equipment maker Tokyo Electron rose more than 4% each. Technology investor SoftBank Group jumped 11.22%. Memory maker Kioxia rose 9.31%. Wall Street fell on Friday as a robust jobs report raised the probability of the US Federal Reserve increasing rates this month, but the semiconductor index rose 3.4%. Kokusai Electric jumped 7.64% after the Nikkei , the publisher of the 225-stock average, said on Friday it would add the chip equipment maker to the benchmark from October in a regular reshuffle. Camera and audio equipment maker Sony Group slipped 2.7%.

China insurer capital injections could boost stock investments

BEIJING/SHANGHAI: BEIJING’S plan to inject capital into big state owned insurers is expected to ease capital constraints and solvency pressures that have held back insurers from investing more long term funds into the stock market, analysts said. Five state-owned insurers and three banks said on Sunday they would raise up to a combined 360 billion yuan (RM217 billion) through capital injections from the Ministry of Finance and other shareholders. The finance ministry said it would issue 300 billion yuan in special bonds to fund the injections, according to state-run Xinhua News Agency. It would mark the first time China has used special bonds to support insurers, extending a financing tool previously reserved for state-owned banks. The recapitalisation could help bolster state insurers that were directed to support the stock market with medium- and long term funds, while positioning them to help regulators manage smaller, higher-risk insurance companies. “The state-led injection will

TotalEnergies to reduce stake in Papua LNG JV GDANSK: TotalEnergies will sell a 9.1% stake in the Papua LNG joint venture to its partners and hand the project’s operatorship to ExxonMobil, the French energy major said yes-terday. The company, which co-owns the project with Exxon, Santos, Kumul Petroleum/MRDC and Eneos Xplora, said it would sell shares to its partners in proportion to their existing interests, while retaining a 20% stake. It did not provide a sale price. TotalEnergies also said it was nearing a final investment decision on the liquefied natural gas faci lities, with contractual and com mercial hurdles having now been cleared. CEO Patrick Pouyanné had said in July he was targeting a final decision by November. Papua LNG is part of TotalEnergies’ portfolio of projects to grow lower cost LNG supplies, producing 5.6 million metric tons per year (Mtpa) from the Elk and Antelope fields in Papua New Guinea’s Gulf Province, mainly for Asian buyers. Exxon, which already runs the neighbouring PNG LNG plant, will take over as the operator of the project. TotalEnergies’ offtake share, which gives it access to 1.5 Mtpa of LNG for its portfolio, remains un changed. TotalEnergies has completed the tendering process for engineering, procurement and construction work for the project, it said, with contracts now pending its partners’ approval. – Reuters The scale of the state insurers’ recapitalisation is significantly smaller than the 200 billion yuan the market had expected earlier, Citi analysts said in a report. – Reuters through A-share placement to the finance ministry. The 60 billion yuan going to the four commercial insurance groups among the five – excluding policy insurer China Export & Credit Insurance Corp – is expected to support roughly 100 billion yuan of additional equity exposure, said Cheng Tan, founder of Beijing based consultancy GMF Research. “The recapitalisation could be seen as a roundabout way of aiding the equity market,” said Christopher Beddor, deputy China research director at Gavekal Dragonomics, noting that equities are a high-risk asset class, and at some level the companies would require state support to continue to increase their equity investments. The injections mirror a parallel policy push in the banking system, where officials are leaning on larger banks to absorb smaller, higher-risk peers to consolidate the industry, Beddor said. a private

o First use of special bonds to recapitalise insurance companies, extending tool used for banks

strengthens the capital base of state-owned insurers, they said. The broader CSI300 blue-chip index was up 0.6% yesterday, though the insurance sector fell 2.5% and the banking sector fell 1.5% amid concerns about dilution from the capital injections. The state funds for insurers arrived sooner than anticipated. The finance ministry said in March it would issue special bonds to recapitalise banks, and many in the market had expected capital support for insurance groups would not materialise until 2027. Five state insurers will receive a combined 70 billion yuan in capital from the ministry. China Life Insurance (Group) Co said it will receive 35 billion yuan and China Taiping Insurance Group 7 billion yuan, while PICC Group plans to raise up to 15 billion yuan

make it easier for insurers to buy equities and meet solvency requirements,” said Gary Ng, senior economist for Asia-Pacific at Natixis, noting Beijing had asked them to invest 30% of new premiums into stocks from the beginning of last year. The share of assets invested in equities was only 21% at the end of 2025 based on five major listed mainland insurers, he said. Zhongtai Securities analysts said in a note that in the short term, the fresh capital would ease pressure on solvency ratios, particularly core solvency, that were negatively affected by a decline in government bond yields used to value liabilities. Over the medium term, it removes a constraint on insurers boosting long-term equity investments, and longer term it

Of the more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 40% rose, 56% fell and 2% traded flat. – Reuters Ailing Australian builder Bathla gets short-term funding, 200 staff ‘stood down’ SYDNEY: Administrators for TARIFFS KICK IN ... A truck crosses into the United States on the Gordie Howe International Bridge, connecting Windsor, Ontario, and Detroit, Michigan, on Sunday. Canada announced on Aug 25 counter-tariffs on US goods ranging between 15% and 50%, intensifying the trade war between the historically close allies. Ottawa’s retaliation will take effect today, a time frame earlier outlined by Prime Minister Mark Carney after US President Donald Trump’s 50% duties came into place Aug 22 – AFPPIC

“Significant work remains to secure the funding required to progress and ultimately complete all projects currently under con struction,” the statement added. Australia’s corporate regulator has described Bathla’s crisis as the “first real test” of the local private credit market, which is heavily exposed to property construction and development. Bathla, founded in 1997, said on its website it has 22,000 apart ments and 3,500 homes under development. – Reuters

“Our immediate priority has been to secure sufficient short-term funding to maintain a minimum viable operating structure,” admini strator Stephen Longley said in a statement. Construction on projects asso ciated with the lenders providing the funding would continue, while other projects would be suspended. Teneo said 213 staff would be “stood down” as a result. During a stand-down an employee stays employed but the employer is not required to pay the employee.

Its problems have shone a spotlight on the risks in Australia’s fast-growing A$200 billion private credit sector and raised questions around whether the government can meet its ambitious housing construction targets. Administrators Teneo Australia said short-term funding arrange ments had been agreed with five lenders, allowing operations to continue for another two weeks. The funding amount and the participating lenders were not disclosed.

troubled Australian home builder Bathla Group secured two weeks of funding yesterday but “stood down” more than 200 staff in a bid to avert liquidation. Bathla, one of the country’s biggest affordable housing de velopers operating in Sydney’s western suburbs, entered admini stration last month owing more than A$3 billion (RM8.75 billion) to scores of private lenders, leaving thousands of homes under con struction in limbo.