RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
Asian Markets Take a Hit Ahead of U.S. Election
Asian stocks experienced a downturn on Tuesday as bond yields and the U.S. dollar reached multi-month highs. Gold prices hovered near record levels, signaling investor caution ahead of the U.S. elections.
Benchmark 10-year Treasury yields in Asia rose three basis points to 4.21%, marking the highest level since late July. U.S. and FTSE stock futures dipped by 0.2%, while European futures saw a slight increase of 0.1%.
Investor Sentiment in Japan
In Japan, the impending general election on Sunday influenced market behavior. Investors withdrew cash, leading to declines in stocks, bonds, and the yen. The Nikkei dropped 1.4% to its lowest point since early October, and the yen fell to 151 per dollar, its lowest since July.
Naka Matsuzawa, a macro strategist at Nomura, noted, “It’s a small capital flight out of Japan.” Market speculation suggests a potential "red sweep" could result in a Republican majority in the upcoming elections.
Broader Market Trends
The MSCI Asia-Pacific index, excluding Japan, fell 0.7%, with Australian and South Korean benchmarks losing over 1%. Chinese markets remained subdued as investors awaited more government initiatives to boost the struggling economy.
Foreign exchange markets stabilized after a volatile session. The Australian and New Zealand dollars gained approximately 0.5% against the U.S. dollar, while sterling rose above $1.30.
Commodities and U.S. Earnings Await
Commodities faced pressure from weak Chinese demand expectations. Iron ore prices dropped over 1% to $100.70 per ton, while oil prices steadied, with Brent crude trading at $73.96 a barrel.
Attention now shifts to U.S. earnings reports, including General Motors and Lockheed Martin, for clues on the economy's direction. With significant data releases scheduled in the coming weeks, analysts caution that the market remains in "waiting game" mode.
