Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
China's Q3 GDP Growth in Line with Expectations, Below Annual Target
According to data released on Friday, China’s economy grew 4.6% year-on-year in the third quarter of 2024. While this figure met market expectations, it marks a slight slowdown compared to the 4.7% growth in the previous quarter. Quarterly GDP growth came in at 0.9%, missing the projected 1%, reflecting continued challenges in key sectors.
Economic Growth Below Beijing’s 5% Annual Target
Year-to-date growth reached 4.8%, falling short of Beijing’s ambitious 5% annual target. Chinese policymakers have rolled out a series of economic stimulus measures over the past few weeks to address this shortfall. These efforts represent the government’s most concentrated attempt yet to boost growth in the face of ongoing challenges.
Major Economic Challenges: Deflation, Private Spending, and Property Market
China's economy has faced persistent issues, including a prolonged deflationary trend, weak private consumption, and a struggling property market. The property sector, in particular, has seen a continued downturn, impacting economic stability. Although Beijing has introduced targeted measures to support this critical industry, many investors remain cautious due to a lack of clear details on the scope and timing of the stimulus.
Industrial Production and Retail Sales Beat Expectations
Despite these obstacles, other sectors showed positive signs. September saw both industrial production and retail sales outperform expectations, helping to offset some of the negative economic impacts. Industrial production rose by 4.5%, while retail sales increased by 5.5%, both beating forecasts. The unemployment rate also fell to 5.1%, lower than the anticipated 5.3%, signaling a potential improvement in labor market conditions.
Stimulus Measures Aim to Stabilize Economy
To counteract the slowdown, China’s government has announced stimulus plans aimed at shoring up local government finances and providing targeted support for the property market. However, the lack of detailed timelines for implementation has left many market participants uncertain about the measures' immediate effects.
Uncertain Economic Outlook Amid Stimulus Efforts
While recent data indicates some positive trends, such as stronger retail sales and industrial output, China’s economic outlook remains mixed. The effectiveness of Beijing’s stimulus package in achieving its 5% GDP target is uncertain, as the country continues to grapple with structural issues in key industries.
