UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Australian Household Spending Dips in December as RBA Tightens Policy 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence 
Lee Seung-heon Signals Caution on Rate Hikes, Supports Higher Property Taxes to Cool Korea’s Housing Market 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Yen Slides as Japan Election Boosts Fiscal Stimulus Expectations 
EM Asian currencies are expected to suffer further from U.S. President-elect Donald Trump’s policies and the prospect of ECB QE tapering. The Fed remains on track for a rate rise in December after U.S. November NFP data released last Friday missed market estimate slightly only.
Donald Trump has pledged to spend USD 1 trillion in fiscal stimulus and sticks to his protectionist views laid out during his campaign. Steven Mnuchin, U.S. Treasury secretary nominee, said last Wednesday that ultra-long bond sales would be considered. It spurred market worries and sent long-term UST yields higher.
Last Thursday, U.S. President-elect Donald Trump called NAFTA a total and complete disaster in his first major address since winning the 2016 election when visiting the Carrier plant.
Escalating U.S. inflation expectations stemming from Donald Trump’s pro-growth stance, i.e. Trumpflation risks, have sparked massive capital outflows from the region and weakened regional currencies. Trans Pacific Partnership (TPP) will be withdrawn by Trump, while NAFTA is supposedly getting a rewrite. It is anticipated to undermine some regional currencies of export-oriented economies.
"In addition, the prospect of ECB QE tapering will be negative to EM Asian currencies in our view, as what happened in early October when the possibility was reported by Bloomberg for the first time," Scotiabank commented in its latest research report.
