Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
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.
