BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
The U.S. dollar slipped on Wednesday following private-sector employment data that signaled growing weakness in the labor market, reinforcing expectations of an upcoming Federal Reserve rate cut. According to payroll processor ADP, U.S. companies shed more than 11,000 jobs per week through late October, reflecting a steady slowdown in hiring.
The data prompted traders to increase bets on a December rate cut, with the CME FedWatch Tool showing a 68% probability of a 25-basis-point easing, up from 62% the previous day. The dollar index hovered near a one-week low at 99.46, while the euro held steady at $1.1586 and the British pound edged higher to $1.3149, distancing itself from recent lows.
Treasury yields also declined, with the 10-year yield dipping 3 basis points to 4.0791% and the two-year yield easing to 3.5596%. ANZ’s head of G3 economics, Brian Martin, noted that the balance of risks around inflation and employment supports a rate cut next month.
Currency strategist Sim Moh Siong of the Bank of Singapore said alternative data indicates a gradually cooling labor market, though not a sharp deterioration. Market sentiment now hinges on the expected U.S. government reopening, which could unlock delayed economic data by next week.
The potential resolution of the longest government shutdown in U.S. history, with a key House vote expected Wednesday, has lifted risk appetite globally. The Australian and New Zealand dollars rose slightly to $0.6529 and $0.5656, respectively.
Meanwhile, the yen weakened to 154.08 per dollar, pressured by risk-on sentiment and Japan’s plans for looser fiscal policy. Prime Minister Sanae Takaichi signaled extended fiscal flexibility and urged the Bank of Japan to be cautious with rate hikes, contrasting the Fed’s more hawkish stance.
