Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Japan’s Service Sector Sustains Growth Momentum in November 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
The U.S. dollar slipped on Wednesday following private-sector employment data that signaled growing weakness in the labor market, reinforcing expectations of an upcoming Federal Reserve rate cut. According to payroll processor ADP, U.S. companies shed more than 11,000 jobs per week through late October, reflecting a steady slowdown in hiring.
The data prompted traders to increase bets on a December rate cut, with the CME FedWatch Tool showing a 68% probability of a 25-basis-point easing, up from 62% the previous day. The dollar index hovered near a one-week low at 99.46, while the euro held steady at $1.1586 and the British pound edged higher to $1.3149, distancing itself from recent lows.
Treasury yields also declined, with the 10-year yield dipping 3 basis points to 4.0791% and the two-year yield easing to 3.5596%. ANZ’s head of G3 economics, Brian Martin, noted that the balance of risks around inflation and employment supports a rate cut next month.
Currency strategist Sim Moh Siong of the Bank of Singapore said alternative data indicates a gradually cooling labor market, though not a sharp deterioration. Market sentiment now hinges on the expected U.S. government reopening, which could unlock delayed economic data by next week.
The potential resolution of the longest government shutdown in U.S. history, with a key House vote expected Wednesday, has lifted risk appetite globally. The Australian and New Zealand dollars rose slightly to $0.6529 and $0.5656, respectively.
Meanwhile, the yen weakened to 154.08 per dollar, pressured by risk-on sentiment and Japan’s plans for looser fiscal policy. Prime Minister Sanae Takaichi signaled extended fiscal flexibility and urged the Bank of Japan to be cautious with rate hikes, contrasting the Fed’s more hawkish stance.
