Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Asian Stocks Slide as Central Bank Decisions and Key Data Keep Investors Cautious 
ASX Shares Slide After ASIC Imposes A$150 Million Capital Requirement 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
Dollar Struggles as Markets Eye Key Central Bank Decisions and Global Rate Outlooks 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand 
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance 
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.
