Bond

Asian shares rose on Wednesday, led by Japan's Nikkei 225, following a second consecutive day of gains in US stocks, providing some relief after a challenging April. The rise was attributed to a weaker-than-expected report on US business activity, which eased concerns about inflation and raised hopes for a potential slowdown in interest rate hikes.

JPMorgan Chase CEO Jamie Dimon praised Prime Minister Narendra Modi's leadership in India, highlighting the significant reforms undertaken by his government, particularly in financial inclusion, education, and infrastructure. Dimon acknowledged India's challenges but emphasized the progress made under Modi, calling him "tough" for breaking old bureaucratic systems and praising his efforts to lift millions out of poverty.

Former RBI Governor Duvvuri Subbarao's memoir reveals a concerning pattern of pressure exerted by the Finance Ministry, under Pranab Mukherjee and P Chidambaram, to manipulate interest rates and growth projections. This blatant disregard for central bank autonomy, crucial for maintaining economic stability and credibility, is a cause for alarm.

Amidst the Israel-Iran conflict, India's policymakers are concerned about rising global crude oil prices, which could dampen economic growth and upset fiscal math if the geopolitical tensions persist. The government is monitoring the situation and will take appropriate measures to mitigate the potential impact.

Sources have revealed discussions on potentially penalizing allies or adversaries engaged in bilateral trade using currencies other than the US dollar, with considerations such as export controls, currency manipulation charges, and tariffs. The US's role in imposing sanctions on Russia has stirred verbal backlash against the dollar, leading nations like the Brics countries and others to deliberate de-dollarization efforts.