Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Australia’s Corporate Regulator Urges Pension Funds to Boost Technology Investment as Industry Grows 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
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.
