Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Japan’s Service Sector Sustains Growth Momentum in November 
U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Hong Kong-listed Chinese airline stocks declined on Monday as growing diplomatic tensions between Beijing and Tokyo triggered a wave of flight cancellations to Japan. Shares of Cathay Pacific Airways Limited, China Southern Airlines, and China Eastern Airlines slipped between 1.4% and 2.5%, lagging behind broader gains in the Hang Seng index. The downturn follows a week of losses for all three carriers, with Cathay Pacific seeing the steepest drop at 3.7%.
Industry data from aviation tracker Flight Master showed that 12 major routes connecting mainland China and Japan were canceled on Monday alone. The disruptions stem from a sharp increase in cancellations by both airlines and Chinese travelers. According to Bloomberg, roughly 30% of the 1.44 million planned trips from China to Japan through late December have been scrapped in the past two weeks, following Beijing’s latest travel advisory. Several airlines have reportedly begun issuing mass refunds for routes affected by the suspension.
The travel pullback adds pressure to an already strained diplomatic relationship. The rift intensified after Japanese Prime Minister Sanae Takaichi made comments regarding potential military involvement in Taiwan—remarks that drew strong criticism from Chinese state media and lawmakers. Attempts by Tokyo to ease tensions by sending envoys to Beijing last week brought little progress, as negative rhetoric between the two sides persisted.
Japan, a top holiday destination for Chinese tourists, typically sees high travel demand during the year-end winter season. Concerns over declining visitor numbers have already weighed heavily on Japanese tourism and entertainment stocks, which suffered notable losses last week. Additional reports from local media suggest that Chinese cinemas are delaying upcoming Japanese film releases, further impacting Japan’s cultural and entertainment sectors.
Japanese markets were closed for a national holiday on Monday, leaving investors to assess the potential fallout when trading resumes.
