South Korea, US Discuss Warship Building Cooperation 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Fed Unveils Stablecoin Rules Under GENIUS Act 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Dollar Holds Near Two-Month High as Yen Approaches 160 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Trump, Xi Focus on Trade and AI at White House Summit 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
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Asian stock markets were volatile in early Friday trading as investors reacted to fresh signals from U.S. President Donald Trump on government funding and monetary policy, alongside mixed corporate earnings from major U.S. technology companies. The uncertainty weighed on risk sentiment even as global equities headed toward a strong monthly performance.
MSCI’s broad Asia-Pacific index excluding Japan moved between gains and losses before slipping 0.2%, extending the previous session’s decline while still on track for its best month in over three years. U.S. equity futures pointed lower, with S&P 500 e-mini futures down 0.4% and Nasdaq e-mini futures falling 0.5%, reflecting ongoing concerns about technology valuations and artificial intelligence investments.
Market focus sharpened after Trump endorsed a bipartisan deal aimed at avoiding another U.S. government shutdown and confirmed he has decided on a nominee to replace Federal Reserve Chair Jerome Powell. These developments pushed the U.S. dollar higher, with the dollar index rising 0.3%, while the 10-year Treasury yield climbed to 4.263% as traders assessed the implications for interest rates. Fed funds futures currently imply an 86.6% probability that the Federal Reserve will keep rates unchanged at its March meeting.
On Wall Street, stocks fell on Thursday after disappointing results from Microsoft reignited doubts about the profitability of heavy AI spending. Microsoft shares plunged 10%, erasing more than $350 billion in market value, while Meta surged 10% as its AI-driven advertising outlook impressed investors. Apple also boosted sentiment by forecasting up to 16% revenue growth for the March quarter, helped by strong iPhone demand and a rebound in China.
In commodities, precious metals retreated after a volatile session, with gold down 0.7% and silver slightly lower as traders unwound extended positions. Oil prices eased, with WTI crude slipping below $65 amid geopolitical concerns following new U.S. measures targeting countries trading oil with Cuba. Cryptocurrencies also weakened, with Bitcoin and ether both posting losses as broader risk appetite softened.
