U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
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 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Asian currencies traded mostly within tight ranges on Thursday, with investors watching the Japanese yen closely as it hovered near levels that have previously prompted government intervention. The U.S. dollar remained stable after lawmakers finally moved to end the prolonged U.S. government shutdown, easing some uncertainty in global markets.
The Australian dollar outperformed its regional peers after stronger-than-expected employment data reduced expectations for additional interest rate cuts by the Reserve Bank of Australia. The AUD/USD pair edged up 0.2%, supported by confidence that the labor market’s resilience may slow the central bank’s easing cycle.
Across broader Asian markets, volatility stayed subdued. The Chinese yuan’s USD/CNY pair slipped 0.1% following a firm midpoint fix set by the People’s Bank of China. The South Korean won’s USD/KRW pair eased slightly after hitting a seven-month high earlier in the week. Meanwhile, the Singapore dollar (USD/SGD) and Taiwan dollar (USD/TWD) saw minimal movement as traders maintained a cautious stance.
India’s rupee weakened modestly, with the USD/INR pair rising 0.1% after October’s consumer inflation came in softer than anticipated. The weaker price index reinforced expectations of potential rate cuts from the Reserve Bank of India.
The Japanese yen drew the most attention as the USD/JPY pair briefly climbed above the 155 level for the first time in nearly 10 months—an area historically associated with government intervention. The yen also reached a record low against the euro, reflecting a deepening bearish trend. Market participants are now watching for any policy response from Prime Minister Sanae Takaichi’s administration.
Bank of Japan Governor Kazuo Ueda maintained a dovish tone, signaling that the central bank still aims for moderate inflation supported by wage growth and stronger economic momentum. Finance Minister Satsuki Katayama echoed this stance, noting it was too early for the BOJ to consider rate hikes while inflation remains below its 2% target.
The U.S. dollar traded steadily in Asia after President Donald Trump signed legislation to end the historic government shutdown, which nearly reached 43 days. With the government reopened, traders anticipate the release of delayed economic data for October and November, which will likely offer insights into the shutdown’s financial impact—an effect Trump estimated at $1.5 trillion.
