Asian Stocks Slide as AI Valuation Fears and BOJ Uncertainty Weigh on Markets 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Korea Zinc to Build $7.4 Billion Critical Minerals Refinery in Tennessee With U.S. Government Backing 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
U.S. Dollar Strengthens on Fed Rate Expectations
On Tuesday, the U.S. dollar maintained its position at a 2.5-month high, buoyed by expectations that the Federal Reserve will adopt a cautious approach to interest rate cuts. This strength, supported by rising Treasury yields, exerted pressure on the yen, euro, and sterling, continuing a trend observed over recent weeks as data revealed the U.S. economy's resilience.
Diverging Views Among Federal Reserve Policymakers
Four Federal Reserve officials expressed support for additional rate cuts on Monday, yet their opinions varied regarding the pace and extent of these cuts. Market participants are now anticipating an 89% probability of 25 basis points cut at the Fed's upcoming meeting on November 6-7, a significant increase from a 50% chance just a month prior, as reported by the CME FedWatch tool.
According to Charu Chanana, chief investment strategist at Saxo, "The market’s aggressive Fed rate cut expectations have been questioned, with U.S. exceptionalism remaining intact and Fed speakers indicating gradual cuts."
Political Landscape Influences Dollar Performance
With the U.S. election two weeks away, the likelihood of former President Donald Trump winning on November 5 is further bolstering the dollar, as his tariff and tax policies are anticipated to maintain high U.S. interest rates. Analysts warn of potential volatility as investors position themselves ahead of the election results.
"While a Trump victory may provide short-term market support, the long-term outlook could differ," strategists at PineBridge Investments noted, contrasting a Trump win with a "status quo" outcome under Vice President Kamala Harris.
Market Reactions and Global Implications
The yield on the benchmark U.S. 10-year Treasury note reached its highest level since late July, last recorded at 4.218%. This upward trend in U.S. yields has contributed to the yen's decline, which hit a near three-month low of 151.10 per dollar on Tuesday.
As Japan approaches its general election on October 27, market optimism surrounds the ruling Liberal Democratic Party (LDP), despite varying opinion polls.
