BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asia’s stock markets dropped sharply Wednesday, following Wall Street’s sell-off, as Iran’s ballistic missile strike on Israel stoked fears of a broader regional conflict. Crude oil prices surged amid concerns of supply disruptions, prompting investors to flock to safe-haven assets like bonds and gold.
U.S. Treasury yields declined during Asian trading hours, with gold hovering near its all-time high. The U.S. dollar strengthened to its highest point in three weeks against the euro, bolstered by a resilient American job market that may reduce the likelihood of a Federal Reserve interest rate cut in November. Conversely, declining inflation trends in the eurozone indicate a possible easing from the European Central Bank later this month.
Market Reaction Across Asia
Japan’s Nikkei fell 1.5%, while South Korea’s KOSPI shed 1.3%, and Australia’s benchmark index slipped 0.3%. The MSCI’s broad Asia-Pacific index dipped 0.5%. Hong Kong’s Hang Seng remained closed after a holiday, and mainland Chinese markets stayed shut for the week-long Golden Week holiday. Trading in Taiwan was suspended due to a typhoon.
U.S. S&P 500 futures dropped 0.16%, following a 0.9% loss in the previous session.
“Geopolitics often outweighs economic indicators, corporate earnings, or central bank policies when it comes to market volatility,” said Chris Weston, head of research at Pepperstone. “While markets often stabilize, these geopolitical risks are significant, and any shift in rhetoric from Israel or Iran could notably affect sentiment.”
Iran-Israel Tensions and Oil Price Surge
Iran stated its missile attacks were complete unless further provoked, while Israel and the U.S. promised retaliation. Brent crude rose over 1% to $74.33 per barrel, adding to Tuesday’s 2.5% jump. U.S. WTI futures climbed 1.3% to $70.73 per barrel after a 2.4% rally. Gold dipped 0.16% to $2,658.63 per ounce, following a 1% surge in the previous session that nearly reached last month's record of $2,685.42.
U.S. Dollar and Global Economic Indicators
Benchmark 10-year Treasury yields edged down 1.5 basis points to 3.7278%. The dollar index held steady at 101.21, its highest level since mid-September. Euro area data showed inflation dropping below the ECB’s 2% target, while U.S. figures highlighted economic resilience. Private payroll data is due later Wednesday, ahead of key non-farm payroll numbers expected on Friday.
