U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
Asian currencies were mostly stable on Monday as traders weighed rising expectations of a December U.S. Federal Reserve rate cut and digested another round of weak manufacturing data across the region. Market sentiment shifted after a series of softer U.S. economic indicators reinforced views that growth is cooling and inflation is easing, pushing money-market pricing to imply nearly an 85% to 90% chance of a quarter-point Fed rate cut at the December 9–10 meeting—up significantly from around 40% only a week earlier.
The U.S. Dollar Index hovered near a two-week low in early Asian trading, with futures also steady as investors reassessed the economic outlook. Despite the slight dip in the dollar, broader positioning remained cautious due to the absence of key labor and inflation data during the U.S. government shutdown period.
Across Asia, major currencies saw muted moves. The Chinese yuan’s onshore USD/CNY pair held largely unchanged, while the South Korean won slipped 0.2% against the dollar. The Indian rupee gained around 0.2%, and the Singapore dollar was mostly flat. The Australian dollar edged down 0.1% as traders balanced global risk sentiment with local economic concerns.
Weak purchasing managers’ index readings added pressure to regional markets. China’s factory activity contracted for the eighth straight month, reflecting soft domestic demand and weaker external orders, partly influenced by U.S. tariff pressures. Japan’s manufacturing sector also remained below the 50-point threshold for a fifth month, and South Korea’s PMI showed continued contraction driven by sluggish exports.
The Japanese yen outperformed most regional currencies, with the USD/JPY pair falling about 0.4%. The yen strengthened toward the mid-155 range after Bank of Japan Governor Kazuo Ueda signaled that policymakers would weigh the “pros and cons” of a rate hike at the December 18–19 meeting. The hawkish tone boosted expectations of a potential BOJ rate increase, lifting Japanese government bond yields as traders priced in tighter monetary policy.
