U.S. Defense Bill Sets Record $901 Billion Budget, Includes Ukraine Aid 
RBA Holds Rates but Warns of Rising Inflation Pressures 
Global Currencies Steady Ahead of Key Central Bank Decisions 
Australian Dollar Rises as RBA Holds Rates and Signals Persistent Inflation Risks 
Asian Markets Slip as Investors Brace for Fed Rate Cut and Global Policy Decisions 
Gold Prices Inch Higher as Fed Rate-Cut Expectations Strengthen 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
China Warns of Rising Global Risks as Tariff Pressures Intensify in 2025 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
UK Job Market Shows Persistent Weakness Ahead of November Budget 
Australia’s Business Conditions Ease in November as Capacity Constraints Persist 
Asian Currencies Hold Steady as Traders Await Fed Decision; Aussie Dollar Edges Higher 
Asian stocks traded flat-to-lower on Tuesday, led by a sharp decline in Japanese markets as chipmaking stocks took a hit. Concerns emerged over DeepSeek’s new AI model, which rivals advanced AI technologies like ChatGPT but operates on older hardware, raising doubts about the demand for expensive AI chips and infrastructure.
Japan’s Nikkei 225 index dropped nearly 1%, with major chipmakers Advantest Corp. and Tokyo Electron Ltd. sliding up to 10% and 4%, respectively. Tech giant SoftBank Group also fell 4.7%, while the TOPIX index showed minor gains.
China and South Korea markets remained closed for the Lunar New Year, leaving trading volumes muted. Hong Kong’s Hang Seng index edged up 0.2%, supported by gains in tech heavyweights like Baidu, Tencent, and Alibaba, which rose between 1% and 5%, reflecting optimism about China’s growing AI capabilities.
The sell-off in chip stocks followed a weak lead from Wall Street, where the NASDAQ Composite slumped over 3%, fueled by a $600 billion market value loss in NVIDIA. However, U.S. futures stabilized during Asian trading.
Australia’s ASX 200 remained steady ahead of inflation data expected on Wednesday. The report could shape expectations for potential interest rate cuts by the Reserve Bank of Australia. Still, persistently high inflation raises doubts about imminent rate adjustments.
Meanwhile, Indian stock futures pointed to a recovery after the Nifty 50 index hit a seven-month low on Monday. Investors also await key U.S. tech earnings and the Federal Reserve's interest rate decision this week.
The market sentiment remains cautious, influenced by global trends and regional holidays, as investors assess the impact of AI advancements on chip demand and inflation data on monetary policies.
