China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
Asian currencies edged higher on Tuesday while the U.S. dollar retreated, as investors grew confident the Federal Reserve will cut interest rates this week. Markets largely expect a 25 basis point reduction, with a nearly 100% probability priced in, though attention remains on the Fed’s outlook for future moves as inflation stays sticky.
Geopolitical risks from the Russia-Ukraine conflict tempered risk appetite, while gold prices surged to fresh record highs. The U.S. Senate also confirmed Stephen Miran to the Fed board, while an appeals court ruled that President Trump cannot dismiss Fed Governor Lisa Cook, ensuring her participation in this week’s policy meeting.
In Asia, the Japanese yen held steady, with USD/JPY slipping 0.1% after a long weekend. The Bank of Japan meets Friday and is expected to keep rates near 0.5% amid political uncertainty following Prime Minister Shigeru Ishiba’s resignation. However, persistent inflation may pressure the BOJ toward a rate hike as early as October. Key August inflation data is due before the decision.
The Chinese yuan was little changed despite Beijing’s pledge to boost domestic consumption through “15-minute convenience living circles” and other stimulus measures. The yuan hovered near its strongest level since November 2024, supported by ongoing trade talks with Washington, even as disputes over semiconductor restrictions persist.
Elsewhere, the South Korean won gained 0.3%, the Singapore dollar edged up 0.1%, and the Australian dollar traded near 10-month highs. The Indian rupee stabilized above 88 per dollar after retreating from record lows earlier this month.
The dollar index slipped 0.1–0.2% in Asian trade, extending overnight losses as traders brace for the Fed’s decision and guidance from Chair Jerome Powell on the path of monetary easing.
