Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
ASX Shares Slide After ASIC Imposes A$150 Million Capital Requirement 
Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Oil Prices Rebound as U.S.-Venezuela Tensions Offset Oversupply Concerns 
Korea Zinc to Build $7.4 Billion Critical Minerals Refinery in Tennessee With U.S. Government Backing 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only 
Dollar Struggles as Markets Eye Key Central Bank Decisions and Global Rate Outlooks 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
China's 10 Trillion Yuan Stimulus Package: Insights and Implications
China is reportedly on the verge of approving the issuance of over 10 trillion yuan (approximately $1.4 trillion) in additional debt over the coming years to boost its fragile economy. This fiscal package may gain further momentum if Donald Trump wins the upcoming presidential election on November 5.
Analyst Perspectives on the Fiscal Strategy
Tommy Xie, OCBC Bank, Singapore
Xie emphasizes that the current policy is primarily focused on managing the local government's hidden debts while ensuring financial stability. He highlights concerns about the financing of the debt swap, noting that merely converting hidden debts to on-balance-sheet obligations may not suffice to enhance local government expenditures.
Gary Ng, Natixis, Hong Kong
Ng points out that while the stimulus size aligns with market expectations, it may function more as a painkiller than a true economic booster. He stresses that the timing and application of bond issuance will be crucial for assessing its impact on growth.
Alvin Tan, RBC Capital Markets, Singapore
Tan highlights that the effectiveness of the fiscal package hinges on how the debt will be utilized. If a significant portion goes toward local government debt restructuring, the net fiscal impact may be less substantial than anticipated.
Louis Kumis, S&P Global, Hong Kong
Kumis believes that the stimulus should bolster confidence and stimulate growth. However, he warns that unless funds are directed toward idle land and property, the housing market's stabilization may remain elusive.
Lynn Song, ING, Hong Kong
Song indicates that if the stimulus package is indeed approved, it could meet investor expectations, especially if a notable sum is allocated to support the property market.
Conclusion
China's potential 10 trillion yuan stimulus package aims to address pressing economic challenges. While analysts offer cautious optimism, the true efficacy of this initiative will depend on its implementation and focus areas.
