A rerun of the 1997 Asian Financial Crisis? HSBC's chief economist sees significant similarities

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The 1997 Asian financial crisis culminated in recessions in economies throughout the region, amid market turmoil characterized by currency collapse, capital flight and banking failures. Now, Asia's financial environment bears some striking similarities to the period immediately before the crisis, according to HSBC's chief economist Frederick Neumann. Surging U.S. bond yields, a weak Japanese yen and tech optimism dominated the financial environment in the lead-up to the crisis, Neumann wrote in an Aug. 31 note. Neumann highlighted elevated U.S. Treasury yields as a key similarity with the period before the 1997 crisis. U.S. Benchmark 10-year bonds , for example, climbed from 5% in October 1993 to around 8% in November 1994. Even in April 1997, yields were at about 7%, some 200 basis points above where they had been four years prior, Neumann noted. Today, 10-year Treasury bond yields have climbed from a low of 0.5% in August 2020 to around 4.79% early Tuesday. "Granted, th...

Indian PM Modi implores Putin to end Ukraine war amid U.S. tariff threat on Russian oil

Indian Prime Minister Narendra Modi has urged Russia to end the Ukraine war and for a cessation of hostilities during his meeting with Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organization summit on Monday. "India supports all peace efforts in this area [Ukraine war], and we will continue to do so," Modi said, adding that "we must move from endless war to the end of war, to the cessation of hostilities." "Every day that the war continues, humanity takes a step backwards," Modi said. On Monday, Russia's Defense Ministry said it is planning "massive strikes" on Ukraine's energy infrastructure, days after launching a devastating attack on an ammunition warehouse, amplifying fears of another winter assault. Russian strike on the warehouse is among its deadliest attacks in Ukraine so far, with a death toll of 38. Russian attacks on Ukraine's energy infrastructure during winter pose Kyiv's toughest challenge of the war yet , as per officials and national security experts. Meanwhile, later this month, the U.S. House is expected to pass a bill honoring Lindsey Graham that would impose up to 100% tariffs on countries that are among the top five purchasers of Russian crude oil or gas, including China and India. Russia is India's largest crude supplier, accounting for more than 50% of the country's oil imports in June and July and nearly 43% till August 24. Between April and July, Russian exports to India rose to over $34 billion, up nearly 60% from last year, as per India's latest trade data. During the meeting with Modi, Putin commended the growth in bilateral trade between the two countries but added that "last year saw a slight decline." U.S. President Donald Trump imposed punitive tariffs of 25% on India in August 2025 for its energy trade with Russia, taking the total levy on Indian exports to the U.S. to 50%. While the tariffs on India have been reduced to 18% earlier this year, the U.S. has been keen to increase the supply of Venezuelan crude to India to replace the Russian barrels.

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