South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Australia Jobs Growth Strengthens Rate Hike Outlook 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Asian share markets rebounded on Friday, tracking a recovery on Wall Street as a turnaround in technology stocks boosted global risk sentiment. Investors, however, remained cautious ahead of a widely anticipated interest rate hike from the Bank of Japan (BOJ), a move that could trigger volatility in currencies and bond markets.
Market sentiment was also supported by a surprise slowdown in U.S. consumer price inflation, which eased to 2.7%. While the softer inflation print briefly lifted confidence, analysts warned the data may be distorted by the recent U.S. government shutdown and should not be taken at face value. As a result, expectations for Federal Reserve rate cuts shifted only slightly, with markets pricing in a 27% chance of a cut in January and a 58% probability by March.
Attention in Asia remained firmly on Japan, where markets are pricing in around a 90% chance that the BOJ will raise interest rates by 25 basis points to 0.75%. Investors currently expect only one additional rate hike to 1.0% in 2026, but any signal of faster policy normalization could strengthen the yen while adding pressure to Japanese government bonds. Japan’s latest data showed core consumer inflation holding steady at 3.0% in November, well above the BOJ’s 2% target.
Japan’s Nikkei index rose 0.6%, while South Korean shares climbed 1.2%, supported by strong earnings from chipmaker Micron Technology. The broader MSCI Asia-Pacific index outside Japan gained 0.2%. U.S. stock futures were flat after overnight gains, and Treasury yields steadied near recent highs.
In global markets, central banks sent mixed signals. The Bank of England cut rates by a narrow margin, while the European Central Bank maintained a more hawkish stance, dampening expectations for further easing. Currency markets were largely stable, with the dollar steady against the yen.
Commodities were mixed, as gold prices hovered below recent highs, oil edged higher on geopolitical risks, and industrial metals showed continued demand.
