Five Things You Need to Know to Start Your Day

(Bloomberg) --

Equity markets had smoother sailing thanks to reassuring words from the White House and PBOC. North Korea wants to hack your crypto account. And China ups the pressure on India's Kashmir decision. Here are some of the things people in markets are talking about today.

Serenity Now

Asian equity futures were mixed as U.S. stocks recovered somewhat from Monday's bloodbath, with all major indexes gaining more than 1%. The White House put an optimistic spin on the trade friction, with Larry Kudlow saying the administration still expects Beijing's negotiators to come to Washington for talks in September and will look at China's steps to support the yuan. Meanwhile, the PBOC reassured a number of foreign exporters the currency won't continue to weaken significantly. But the half-baked sell-off has traders worried the worst is yet to come.

Trump and Xi's Big Bets

Despite a market recovery, ties between the U.S. and China are at their lowest point in decades. A big part of the problem is that neither country's leader believes the other is serious about making a trade deal: China sees Trump as posturing ahead of the 2020 election, while U.S. officials think Xi is looking to wait him out for a better deal. Either way, the political space for compromise is diminishing as hardliners take center stage, prompting investors to weigh the potential economic fallout. As the world waits to see what comes next, here's why the U.S. made its latest move.

Master Hacker

North Korea has mastered hacking into financial systems, stealing about $2 billion from banks and cryptocurrency exchanges for its nuclear weapons programs, a new UN report found. Pyongyang also has overseas representatives controlling bank accounts. Newly unsealed court documents show the U.S. is probing transactions involving three big Chinese banks that allegedly helped finance North Korea's nuclear program.

Kashmir Tensions Rise

Beijing criticized India's decision to withdraw the autonomous status of Kashmir, which borders China, accusing New Delhi of undermining the state's territorial sovereignty. (The region includes two areas that are controlled by China and claimed by India.) Pakistani PM Imran Khan said the move may lead to war, and the nation's army pledged to go to "any extent" to defend the people of the disputed state.

Rate Cuts Coming

New Zealand and India will probably both cut rates by 25 basis points Wednesday, while the Bank of Thailand is expected to hold. The RBNZ is seeking to support the labor market and reduce upward pressure on the kiwi and may hint at further easing, economists said. The RBI's reduction will be its fourth in a row, amid calls from investors and the government to do more to boost growth.