ASX Proposes New Share Dilution Limits for Public Takeovers 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Trump Questions USMCA Renewal as Trade Talks Continue 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening 
Asian Stocks Advance as Nikkei Nears Record High Ahead of Fed Decision 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Asian stock markets paused on Monday after posting strong weekly gains, with thin holiday trading in China, South Korea, Taiwan, and the United States keeping activity subdued. Investors turned cautious following weak Japan GDP data and ahead of key global economic releases later this week, including U.S. fourth-quarter GDP and global manufacturing surveys.
Japan’s economy expanded just 0.1% annualized in the December quarter, sharply below the 1.6% forecast, as government spending weighed on growth. The disappointing data highlights the economic challenges facing Prime Minister Sanae Takaichi and strengthens expectations for additional fiscal stimulus. Despite the weak figures, the Nikkei index edged up 0.2%, extending last week’s 5% rally. MSCI’s Asia-Pacific index outside Japan gained 0.1%, while South Korea and Taiwan recently posted weekly surges of 8.2% and nearly 6%, respectively.
Market strategists warn that heavy investment in AI infrastructure could trigger volatility, particularly in Asian memory stocks. Concerns are mounting that if major technology firms slow capital expenditure, sectors like Korean and Taiwanese semiconductors could face sharp corrections after significant gains.
In the United States, S&P 500 futures rose 0.2% and Nasdaq futures added 0.1% as investors await Walmart earnings for insight into consumer spending trends. Defensive stocks have outperformed amid a rotation away from technology shares, pressured by soaring AI-related capex costs. Hyperscaler capital expenditure plans have climbed to $660 billion, contributing to a 7% year-on-year drop in S&P 500 share buybacks.
Bond markets attracted strong inflows as Treasury yields fell, with two-year yields closing at 3.408%, their lowest since mid-2022. Markets now price in a strong probability of a Federal Reserve rate cut by June. The U.S. dollar index slipped to 96.890, while gold eased to $5,014 per ounce and oil prices held steady, with Brent crude at $67.74 per barrel.
