New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Chinese President Xi Jinping’s stimulus measures have sparked a rally across Asian markets. This week, China introduced a series of monetary, liquidity, and fiscal policies, fueling investor hopes for an economic turnaround akin to Mario Draghi’s 2012 pledge to save the euro.
While it's unclear whether these efforts will drive sustained recovery, they have managed to ease concerns over near-term growth and inflation.
Global Risk Assets Respond to Optimism
The effects of China’s policy moves extend beyond Asia. As the U.S. economy remains on a path toward a “soft landing,” and the Federal Reserve continues to manage rates proactively, global markets have seen a boost. On Thursday, the MSCI World and S&P 500 indices both reached new highs, signaling growing confidence among investors.
Asian Markets Surge, Eye Profit-Taking
Shanghai’s blue-chip index is up 10.8% for the week, setting the stage for its largest weekly rise since 2014. The broader Shanghai Composite Index gained 9.7%, potentially marking its best week since 2008. Hong Kong’s Hang Seng Index also saw a 4% rise on Thursday, totaling a 9% gain for the week — the highest in 13 years. However, potential profit-taking looms as the quarter ends and China’s Golden Week holiday approaches.
Caution Amid Euphoria
While market sentiment has rebounded from earlier lows, a cautious approach is warranted. The recent measures in China may not fully resolve deeper economic challenges, much like how Draghi’s interventions did not completely solve the euro zone’s issues. China's efforts may not eliminate the property crisis, deflationary risks, or long-term demographic issues, though they provide temporary relief.
Key Indicators to Watch on Friday
- Tokyo Inflation (September): Expected to show a core rate slowdown to 2.0% from 2.4%.
- Japan’s Leading Indicators (July): Potential influence on the economic outlook and market direction.
- German Unemployment (September): Impact on broader global economic trends.
Friday's data releases will provide further direction for Asian markets as investors weigh the latest developments from China and Japan.
