Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
Asian Stocks Decline on Election Fears and Economic Data
Most Asian stock markets experienced declines on Wednesday as investor risk appetite waned ahead of a tight U.S. presidential election and a series of critical economic data releases this week.
Japanese Markets Thrive Despite Political Uncertainty
Japan's Nikkei 225 index emerged as a standout performer in Asia, surging over 1%, while the TOPIX index climbed 0.8%. This upward trend was largely driven by gains in technology stocks, which followed the positive momentum of their U.S. counterparts. The recent loss of the parliamentary majority by Japan’s ruling Liberal Democratic Party has intensified political uncertainty, raising expectations for increased fiscal spending and a halt to potential interest rate hikes by the Bank of Japan (BOJ). Consequently, the yen weakened, benefiting local exporters.
The BOJ is anticipated to maintain its current interest rates during Thursday’s meeting, amid growing political resistance to rate increases.
Chinese Stocks Remain Steady Amid Economic Signals
In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes showed muted movements, while Hong Kong’s Hang Seng index dipped 0.4%. Investor attention turned to the upcoming purchasing managers’ index (PMI) readings, expected Thursday and Friday, as China continues to face sluggish growth. Recent major stimulus announcements from Beijing have generated limited optimism, with further fiscal measures anticipated from next week’s National People’s Congress meeting.
Regional Overview
Broader Asian markets were mostly negative, reflecting strained risk sentiment. Australia’s ASX 200 fell 0.6% following sticky inflation data, suggesting a potential hawkish shift from the Reserve Bank of Australia next week. Meanwhile, South Korea’s KOSPI slipped 0.2% as local chipmakers tracked an 8% drop in AMD shares, following a disappointing outlook from the chipmaker.
