Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
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 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Asian stock markets climbed on Monday, fueled by optimism surrounding corporate earnings and growing expectations for U.S. interest rate cuts. Investors are closely watching the U.S. inflation data, anticipated to show core inflation steady at 3.1% in September—unlikely to alter the Federal Reserve’s dovish outlook.
JPMorgan’s chief U.S. economist Michael Feroli noted that Fed Chair Jerome Powell’s focus on labor market weakness signals another rate cut at the upcoming FOMC meeting. Markets are fully pricing in a 25-basis-point rate reduction this month, followed by another in December, potentially bringing rates down to 3.0% by mid-2026.
In Asia, Japan’s Nikkei jumped 1.5% after news that the Liberal Democratic Party and Japan Innovation Party would form a coalition government, paving the way for Sanae Takaichi to become Japan’s first female prime minister. Analysts expect her pro-stimulus stance to boost equities while weighing on the yen and bond yields. South Korea’s KOSPI rose 0.6%, and MSCI’s Asia-Pacific index outside Japan edged up 0.1%.
U.S. stock futures were steady, with S&P 500 futures flat and Nasdaq futures up 0.1%, as investors anticipate strong third-quarter results from major corporations including Tesla, Netflix, Ford, GM, Procter & Gamble, and Coca-Cola. LSEG IBES data forecasts an 8.8% year-over-year increase in S&P 500 earnings, underscoring high expectations for the reporting season.
Falling bond yields supported equity sentiment, with 10-year U.S. Treasury yields slipping to 4.011%. Meanwhile, the euro strengthened to $1.1656, and the yen weakened to 150.92 per dollar.
Gold prices held firm near $4,245 per ounce after a 6% weekly surge, while oil prices remained subdued—Brent crude steady at $61.28 and U.S. crude at $57.57—as OPEC+ maintained high output levels.
