Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
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 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
Trump to Announce New Federal Reserve Chair Pick as Powell Replacement Looms 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Oil Prices Hit Four-Month High as Geopolitical Risks and Supply Disruptions Intensify 
Philippine Economy Slows in Late 2025, Raising Expectations of Further Rate Cuts 
Asian stock markets opened the week lower as investors reduced risk exposure amid thin year-end liquidity, looming central bank decisions, and a packed schedule of delayed economic data releases. Early Monday trading saw MSCI’s broadest index of Asia-Pacific shares outside Japan fall by 0.6%, with South Korean equities leading losses after sliding as much as 2.7%, despite being among the strongest-performing markets this year.
Market sentiment has been weighed down by caution as traders approach the final full trading week of 2025. According to market analysts, many investors have already begun closing positions ahead of the holidays, contributing to lower liquidity. While trading conditions remain manageable for now, liquidity is expected to drop sharply as the year draws to a close, potentially amplifying market moves.
Global investors are closely watching a series of central bank policy decisions. The Bank of Japan is widely expected to raise interest rates by 25 basis points to 0.75%, reflecting confidence in the country’s economic resilience. In contrast, the Bank of England may cut rates by the same margin to 3.75%, while the European Central Bank, along with Sweden’s Riksbank and Norway’s Norges Bank, is expected to keep rates unchanged. These decisions could influence global currency markets, bond yields, and equity flows.
U.S. markets showed modest stability, with S&P 500 e-mini futures up 0.1% and the 10-year Treasury yield holding near 4.18%, as investors awaited key U.S. economic indicators. These include the November jobs report and consumer price index data, both delayed due to the recent U.S. government shutdown.
In Asia, Japanese stocks were supported by a strong Tankan survey, which revealed that large manufacturers’ sentiment reached a four-year high, suggesting the economy is withstanding pressure from higher U.S. tariffs. Meanwhile, the Chinese yuan hovered near its strongest level in over a year, as markets awaited fresh property and activity data amid renewed concerns over China’s troubled real estate sector following payment issues at state-backed developer China Vanke.
Commodity markets were mixed, with Brent crude edging higher on refinery disruptions in Canada, while gold prices eased slightly after a strong rally last week. Cryptocurrency markets remained under pressure, with bitcoin and ether extending recent losses as risk appetite stayed subdued.
