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The overnight Hong Kong Interbank Offered Rate surged to 5.018 %, marking its first breach of 5 % this year amid tightening liquidity pressures tied to quarter-end demand.

Liquidity in the local banking system has become deeply constrained as the aggregate balance of Hong Kong dollar deposits plunged to historically low levels and the Hong Kong Monetary Authority continues active currency-peg defence. The jump in HIBOR reflects mounting stress in short-term funding markets even as the HKMA’s base rate remains at 4.50 %, following its downward adjustment earlier this month in line with the U. S. Federal Reserve.

Banks are confronting sharper funding costs just as capital market activity intensifies. The costs of intra-day and overnight loans between financial institutions are rising, exerting upward pressure on lending rates and potentially damping leveraged trading strategies and margin financing. Several market participants have begun repricing forward rate agreements to reflect a higher floor for short-term rates.

The sharp move in overnight HIBOR comes after months of extreme volatility. Earlier in 2025, the overnight rate plunged—from around 4.50 % in May to near zero—as the HKMA intervened by selling Hong Kong dollars to counter excessive strength, flooding banks with liquidity. That in turn compressed funding costs across all tenors. But the very intervention that depressed rates is now being reversed: as the HKMA buys Hong Kong dollars to defend the weak end of its trading band, it is draining system liquidity, pushing interbank rates upward.

Analysts view this as part of the natural adjustment embedded in Hong Kong’s Linked Exchange Rate System, where capital flows and monetary interventions translate into automatic interest rate feedback mechanisms. With the aggregate balance shrinking sharply, funding is now scarcer and HIBOR has begun to converge toward U. S. dollar rates.

Still, structural frictions remain. Banks have so far been cautious to fully pass through heightened HIBOR into lending rates, citing competitive pressures and deposit stickiness. Likewise, mortgage borrowers on HIBOR-based plans face mounting exposure.

The HKMA’s earlier 25 basis point cut to its base rate to 4.50 % followed a matching reduction from the U. S. Federal Reserve. That move provides a nominal cushion to banks’ cost of funds. But with HIBOR now overshooting expectations, the policy buffer is tightening.

In foreign exchange markets, the HKMA’s continued interventions to maintain the HKD’s 7.75–7.85 peg are intensifying. Pounds and U. S. dollar flows have grown more volatile, pressuring capital inflows and outflows that ripple into short-term rates. Some strategists caution that if HIBOR remains elevated, Hong Kong’s carry trade — borrowing in HKD at low cost to invest in higher-yielding assets — may lose its appeal.

At the same time, robust IPO issuance and equity market activity bolster demand for Hong Kong dollars, adding to funding stresses. Brokers and margin financiers, squeezed by rising short-term rates, are beginning to reduce leverage usage.

Monetary officials have reiterated that the primary mandate of the HKMA is exchange rate stability, not targeting specific interest rates. But as interbank funding becomes more expensive, the tension between rate dynamics and peg defence is becoming harder to manage.

Market watchers are now eyeing whether HIBOR will stabilise around the 4.5 %–5.5 % band or continue climbing. Forward curves imply that some of the rate shock is already priced in. Meanwhile, banks are expected to adjust lending floors and reframe risk pricing over the coming weeks, especially in the mortgage and leveraged finance sectors.

U. S. equity markets eked out modest gains on Monday as investors absorbed mixed signals from policymakers and braced for a potentially disruptive funding impasse. The S&P 500 rose about 0.3 percent, while the Nasdaq added 0.5 percent.

Tech and semiconductor names powered much of the upside, with Nvidia climbing nearly 2 percent and Micron advancing over 4 percent. Meanwhile, energy lagged, weighing on the Dow Jones. Treasuries rallied: the 10-year yield fell to around 4.14 percent.

Markets have long eyed the congressional standoff over government funding, now escalating toward a possible shutdown as the funding deadline tightens. If Congress fails to agree on a stopgap measure by the start of October, crucial economic reports — including this week’s non-farm payrolls — may be delayed.

Within the Senate, tension has grown around healthcare and Medicaid funding demands, a key sticking point in negotiations. Democratic leaders have warned against accepting a funding plan that omits those measures, even as pressure mounts to avoid a closure.

Analysts warn that the shutdown risk magnifies uncertainty over Federal Reserve policy. Without fresh labour and inflation data, the central bank may have to lean more heavily on its own forecasts, complicating rate-cut expectations. Some strategists suggest the Fed could still manage two cuts in 2025, contingent on how deeply economic data is disrupted.

Historical precedent somewhat tempers alarm. In past shutdowns of limited duration, equities have tended to rebound quickly. On average, the S&P 500 returns roughly 0.1 percent during shutdowns, and over the following year the index has gained about 12.2 percent. Still, the threat this time includes a new wrinkle: proposals for mass federal layoffs rather than traditional furloughs, which could intensify economic and psychological fallout.

Sector watchers anticipate uneven effects. Government contractors and firms reliant on federal payments could see downside pressure. In contrast, defensive and AI-linked names may continue attracting flows.

Gold cracked past $3,800 per ounce as investors rotated into safe havens, and the dollar weakened amid risk aversion. Meanwhile, earnings announcements and deal activity remain under close scrutiny: Electronic Arts jumped nearly 4.5 percent after announcing a $55 billion going-private deal.

Markets have thus far held up despite the political drama. The headline indexes are still straddling their 50-day moving averages — Nasdaq has run more than 100 sessions without dipping below. But as the week progresses, volatility could spike if lawmakers stall or key data go missing.

By Nitya Chakraborty In Nepal, following the tumultuous developments on September 8, 9 and 10 as a result of Generation Z uprising, the 2.9 crore nation is crawling back to normalcy . Under the leadership of interim Prime Minister Sushila Karki, the new administration is making sincere efforts to ensure law and order to prepare […]

The article Nepal’s Political Course Till March 5 Elections Gripped In Uncertainties appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Dubai police have announced an extensive set of security measures and entry restrictions for spectators attending the Asia Cup 2025 final between India and Pakistan at the Dubai International Cricket Stadium. Violations of the rules could trigger fines of up to Dh30,000 and imprisonment under federal law governing sports venues.

Every seat for Sunday’s showdown has been sold, with organisers confirming a full capacity of 28,000 spectators. With the historic match being the first final between these arch-rivals in Asia Cup history, expectations of heightened emotions have driven authorities to step up security preparations.

The police directive mandates that attendees arrive at least three hours before the start and that each ticket admits a single entry—re-entry will not be allowed. All spectators must enter through gates assigned by organisers, follow instructions from stewards and security staff, and park only in specified areas. Any departure from the stadium during the match will forfeit re-entry.

The list of prohibited items is comprehensive. Fireworks, flares, laser pointers, and any flammable or hazardous materials are banned outright. Sharp objects, weapons, toxic substances, remote-controlled devices, large umbrellas, camera rigs, tripods, selfie sticks, and unauthorised photographic equipment are also barred. Flags, banners, or placards without official approval, pets, bicycles, skateboards, scooters, glass items, and outside food or drink are disallowed. Smoking or carrying any item that could endanger public safety will attract penalties.

Under the Federal Law on the Security of Sports Facilities and Events, the penalties range from Dh5,000 to Dh30,000 for breaches such as entering the pitch, carrying banned items or misbehaving. More severe violations — including throwing objects, abusive or racist language — may lead to fines in the Dh10,000 to Dh30,000 range or imprisonment for up to three months.

Multiple specialised police units and surveillance teams will be deployed around the stadium. Authorities have urged full cooperation from fans to allow the match to proceed without incident. The Events Security Committee is jointly monitoring crowd movement, traffic, and stadium access.

On the transport front, traffic congestion is expected to peak along Al Khail Road, Sheikh Mohammed bin Zayed Road, Hessa Street, Umm Al Suqeim Street, and via routes through Al Barsha, Dubai Motor City and surrounding neighbourhoods. Alternate routes such as Umm Al Suqeim Street or Al Fay Road via Sheikh Mohammed bin Zayed Road are being recommended, especially for motorists approaching from the south.

Parking zones P1 to P4 at the stadium are allocated, and overflow areas in Dubai Motor City and Dubai Studio City will provide shuttle services. Some park-and-ride facilities near Mall of the Emirates and First Abu Dhabi Bank Metro stations will function, connecting visitors to the venue via feeder services and taxis.

Dubai police have also issued multilingual advisories to reach a broader cross-section of fans. Authorities emphasise that the cooperation of spectators will be crucial to preserving a safe environment and ensuring that the focus remains on the cricketing spectacle.

BNB has hovered near the $1,000 mark as validators on BNB Chain propose slashing gas fees by 50 per cent and accelerating block confirmation times to strengthen the network’s competitive edge.

The validator community’s draft proposal recommends reducing the minimum gas price from 0.1 Gwei to 0.05 Gwei and cutting block intervals from 750 ms to 450 ms, a change that could bring average transaction costs down to roughly $0.005. The plan reflects an effort to match or outpace low-cost rivals such as Solana and Base, which have been gaining traction in the DeFi and trading sectors.

Trading activity now accounts for about 67 per cent of all BNB Chain transactions — a sharp rise from around 20 per cent earlier in 2025 — underscoring the importance of cost and speed for users and developers. The proposal includes a guiding principle: “as long as staking APY stays above 0.5 per cent, BNB Chain should strive for the lowest possible gas fees.”

Validator groups argue that the network still has significant unused capacity, operating at under 30 per cent utilisation, leaving room for traffic growth without risking congestion. They claim the infrastructure can handle up to three times the current load.

Critics, however, warn that cutting fee revenue so sharply could weaken validator economics, potentially undermining incentives for security and stability. Some community voices stress the need for a careful balance: dramatic cost cuts must not come at the expense of decentralisation or long-term resilience.

This proposal builds on prior gas reductions. In April 2024, gas was cut from 3 Gwei to 1 Gwei, and in May 2025, it was further reduced to 0.1 Gwei. Those moves contributed to a roughly 75 per cent drop in median transaction fees and a jump of 140 per cent in daily transaction volume.

Beyond fees and speed, the proposal is intended to enhance BNB Chain’s positioning in a crowded landscape. As rival chains push for lower latency and micro-costs, BNB’s validator-led initiative signals an attempt to reclaim appeal among traders and protocol builders.

Luma Protocol, incubated by PopChain and Nivex, officially entered the market on 20 September 2025, positioning itself as a new architecture in decentralized finance that anchors value in computing power rather than speculative token mechanics. At midday UTC+8 the project launched its pre-sale and, within hours, issued the first mining rewards — signalling a shift from purely token-based incentives toward infrastructure-backed models.

The project’s core proposition is that “Hash Power” — the computational capacity underlying blockchains — becomes a tangible, tradeable asset integrated into DeFi systems. Luma’s model seeks to counterbalance what its promoters describe as the unsustainable cycles of token subsidies that have affected prior generations of DeFi protocols. Underpinning the system, Luma plans to merge capital, computational resource markets, and application layers in a closed-loop infrastructure.

PopChain contributes its identity and settlement capabilities, while Nivex offers liquidity, exchange infrastructure, and compliance support. This strategic alignment aims to deliver an ecosystem where value issuance, transaction execution, and mining resource distribution interlock. According to the announcement, the first mining rewards were disbursed at midnight UTC+8, immediately after launching the pre-sale.

Market reaction to the LUMA token has been volatile. On the MEXC exchange, LUMA traded with a 24-hour jump of 26 per cent, reflecting speculative interest. Yet the token’s 7-day price variance is extremely steep, plunging nearly 99.97 per cent over the week, pointing to high risk and low liquidity stability. The circulating supply and full market capitalisation currently remain opaque.

Critics caution that the concept of tokenizing hash power is not without inherent risk. In the realm of blockchain security, high concentration of mining capacity has historically exposed smaller networks to attacks. The accessibility of mining power through services like NiceHash demonstrates how hash power can be rented and concentrated, creating vulnerability, especially for new entrants. At the same time, mainstream DeFi research underscores systemic risks emerging from leverage, protocol interdependence, and opacity in governance.

Luma’s governance architecture is not fully detailed in public documentation, but the model will need to grapple with decentralised decision-making, hardware centralisation, and incentives for fair participation. Without sufficient safeguards, the protocol may face the same challenges of centralisation, collusion, or exploitability that have troubled other DeFi platforms.

For its part, Nivex has been scaling its ecosystem prior to Luma’s debut. It recently launched a Web3 wallet integrated with PopChain, with plans to embed users into a flow from wallet to liquidity operations to settlement. This vertical integration may benefit Luma by driving demand for the infrastructure stack. Nivex also recently listed the POP/USDT trading pair, anchoring the POP ecosystem that underlies PopChain’s social finance ambitions.

On the supply side, the broader mining industry’s economics are under strain. Electricity, hardware depreciation, and operational costs continue to restrict profitable deployment of hash power. The Cambridge Digital Mining Report underscores that energy cost variance across geographies is a major barrier for expansion. Projects that seek to monetise compute power must navigate this cost differential.

Exports of gasoline and diesel from India have climbed to multi-year highs in 2025, pushed by expanded refinery output, elevated ethanol blending, and weakening domestic demand during the monsoon season. Analysts expect gasoil shipments to reach 610,000–630,000 barrels per day, according to Wood Mackenzie, while Kpler forecasts hover nearer 560,000 bpd.

Heightened crude processing capacity has enabled major refiners such as Reliance Industries and Mangalore Refinery and Petrochemicals Ltd to divert more fuel into exports. Gasoline exports are estimated at about 400,000 bpd this year, supported by the country’s adoption of 20 % ethanol blending in petrol—a marked rise from 12 % in 2023.

Much of India’s diesel is now bound for Europe, where supply may tighten later this year due to refinery maintenance across the Middle East and Europe. The shift is occurring as the European Union phases in restrictions on refined petroleum imports derived from Russian crude, which clears the way for alternative sources. In August alone, India’s diesel exports to Europe surged by 137 % year-on-year, reaching 242,000 bpd.

India’s push into export markets is aided by discounts on Russian crude supplied during Western sanctions, allowing refiners to maintain margins even as exports grow. The increase in export volumes comes despite diplomatic criticism from Washington, which questions the use of discounted crude for profit. India asserts that its procurement practices stabilise global fuel markets rather than distort them.

Domestically, the monsoon period has dampened fuel demand, helping free up surplus supply for export. In parallel, Indian refiners have managed fewer unscheduled maintenance shutdowns, keeping plants operating near capacity. Wood Mackenzie anticipates India’s crude processing will increase by 130,000 to 160,000 bpd in 2025, reaching around 5.51 million bpd.

The higher share of ethanol in petrol has been key to redirecting conventional fuel toward exports. As of August, India achieved a 19.8 % ethanol blend—putting the country on track for its 20 % target. To facilitate further expansion of cleaner fuels, the Directorate General of Foreign Trade has also authorised exports of second-generation ethanol, subject to certification and authorisation.

Europe’s transition away from Russian-derived refined products leaves a strategic opening for India. Saudi Arabia’s refined product shipments are projected to dip by about 300,000 bpd in October–November due to maintenance of several Aramco plants, creating additional export opportunities for Indian producers.

Yet the surge is not without complexity. In April 2025, India’s diesel exports hit their lowest point in over a decade, dropping to an estimated 1.15 million metric tons amid refinery maintenance at the Jamnagar complex. That earlier slump underscores the delicate balance between sustaining export momentum and managing domestic operations.

Simultaneously, India is also redirecting surplus rice stocks toward ethanol production to bolster blending targets. The government has allocated 5.2 million metric tons of rice for biofuel conversion—a move that helps ease pressure on grain reserves while reinforcing fuel strategy.