China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Most Asian currencies traded within tight ranges on Friday, while the U.S. dollar remained firm near a six-week high, supported by strong U.S. economic data and fading expectations for imminent Federal Reserve rate cuts. The U.S. Dollar Index was largely flat during Asian trading hours after climbing to its highest level since early December overnight, reflecting continued demand for the greenback. U.S. Dollar Index futures were also little changed around 03:35 GMT, signaling cautious positioning ahead of further economic cues.
Recent U.S. macroeconomic releases reinforced the dollar’s strength. Initial jobless claims unexpectedly fell to 198,000 last week, well below market forecasts of 215,000, underscoring resilience in the U.S. labor market. This data has pushed traders to reassess their outlook for Federal Reserve policy, with expectations for the first interest rate cut now shifting toward mid-year rather than the early months of 2026. Comments from several Federal Reserve officials added to this sentiment, as policymakers emphasized a willingness to keep rates steady, citing stabilizing employment conditions and persistent inflation pressures.
In Asia, the Japanese yen showed mild stability after hovering near 18-month lows. The USD/JPY pair slipped around 0.3%, supported by verbal intervention from Japanese government officials seeking to curb excessive yen weakness. Analysts noted that the Bank of Japan is increasingly mindful of the yen’s impact on inflation. However, speculation over a potential snap election under Prime Minister Sanae Takaichi has kept the currency under pressure, as markets fear looser fiscal policy could weigh further on the yen.
Elsewhere, the South Korean won weakened slightly, with the USD/KRW pair rising about 0.2% and heading for a weekly gain of over 1%, despite brief support from comments by U.S. Treasury Secretary Scott Bessent earlier in the week. The Chinese yuan remained largely steady, with both the onshore USD/CNY and offshore USD/CNH pairs showing minimal movement. The Indian rupee and Singapore dollar also traded flat, reflecting broader regional caution.
Meanwhile, the Australian dollar edged modestly higher, with AUD/USD up around 0.1%, as investors balanced global risk sentiment against domestic factors. Overall, Asian currency markets remained subdued, tracking U.S. dollar strength and evolving expectations around Federal Reserve interest rate policy.
