News

Follow the latest analyses and key economic, financial, and global market news in this section. Our team reviews the most important market events daily and provides comprehensive insights for traders and enthusiasts.

  • investingLive Asia-Pacific FX news wrap: Gold cracked above US$4500, but then gave it back

    Asia session summary

    • Japan’s November services PPI printed as expected at an elevated 2.7% y/y

    • BOJ October minutes landed but were largely overlooked after December’s rate hike

    • Broad USD weakness lifted G10 FX, with JPY, AUD and KRW outperforming

    • APAC equities traded mixed in thin pre-holiday conditions

    • Gold and silver extended gains, with silver breaking above US$72

    Data and policy signals from Japan were the early focus in Asia. Japan’s November Corporate Service Price Index , the services-sector PPI, printed in line with expectations at a still-elevated 2.7% year-on-year, reinforcing the view that underlying service-sector price pressures remain firm. The Bank of Japan also released minutes from its October policy meeting, though these attracted little attention given they pre-dated December’s far more consequential decision to lift the short-term policy rate to its highest level in around 30 years.

    In FX markets, broad U.S. dollar weakness dominated price action. The dollar index remained on the back foot in holiday-thinned trade, extending losses seen earlier in the week and pushing several G10 currencies to session highs. The yen continued to strengthen, supported by recent official jawboning that reinforced authorities’ discomfort with excessive JPY weakness. The Australian dollar also advanced, while the euro and sterling pushed up toward three-month highs.

    The standout move in Asia FX came from South Korea, where the won strengthened sharply after reports that the country’s pension fund had activated strategic foreign-exchange hedging measures — a development seen as adding institutional support for the currency.

    Asian equity markets were mixed and largely range-bound, reflecting light volumes as traders wind down ahead of the Christmas period. Japan’s Nikkei 225 posted modest gains, while Hong Kong’s Hang Seng and the Shanghai Composite were little changed. U.S. equity futures traded quietly overnight, hovering around flat in narrow ranges.

    In commodities, precious metals extended their recent surge. Gold briefly popped above the US$4,500 level before easing back below the psychological threshold, while silver pushed decisively higher again, trading above US$72 and outperforming on the session.

    This article was written by Eamonn Sheridan at investinglive.com.

  • Nomura flags Asia policy split as Fed seen cutting twice in 2026

    Summary

    • Nomura sees Asia’s easing cycle largely complete despite low inflation

    • A north–south monetary policy divide is emerging across the region

    • Korea, Australia, New Zealand and Malaysia seen holding or hiking rates

    • Residual rate cuts expected in India, ASEAN economies and China

    • Risks skewed to global growth, trade tensions and AI-related volatility

    Asian monetary policy is entering a more fragmented phase, with a growing divide emerging between northern and southern economies, according to Nomura.

    In a recent note, Nomura argues that the easing cycle across much of Asia is now largely complete, despite inflation remaining relatively subdued in many economies. The bank says improving growth dynamics, policy rates close to neutral and a desire among central banks to preserve policy ammunition have encouraged a more cautious stance. Financial stability concerns, particularly rising housing prices, are also limiting the scope for further rate cuts in parts of the region.

    This cautious posture contrasts with expectations in the United States, where Nomura’s U.S. economics team continues to forecast two Federal Reserve rate cuts in 2026. As a result, the bank suggests Asia could increasingly decouple on the hawkish side relative to the U.S.

    Within the region, Nomura identifies a policy split. In South Korea, New Zealand, Australia and Malaysia Nomura says the easing cycle is seen as over, reflecting stronger growth momentum. Nomura expects Bank Negara Malaysia to raise rates in the fourth quarter of 2026, pre-empting a build-up in financial stability risks, while the Reserve Bank of New Zealand is forecast to resume rate hikes in 2027.

    Japan stands somewhat apart. Nomura expects just one more rate hike from the Bank of Japan in December 2025, followed by a prolonged pause through 2026 as core inflation gradually slips back below the 2% target.

    By contrast, other Asian economies are expected to retain an easing bias. Nomura forecasts additional rate cuts in India, Thailand, Indonesia and the Philippines, citing a combination of softer growth and muted inflation pressures. In China, the bank expects a modest 10-basis-point policy rate cut, but sees fiscal policy doing more of the heavy lifting from around spring 2026, particularly via increased lending by policy banks to local governments.

    Nomura highlights faster global growth and stronger Chinese domestic demand as key upside risks, while warning that weaker U.S. demand, renewed trade tensions or a sharp correction in AI-related investment could derail the outlook.

    This article was written by Eamonn Sheridan at investinglive.com.

  • Washington delays semiconductor tariffs as it seeks China trade truce

    Summary

    • U.S. to impose tariffs on Chinese legacy chips, but only from June 2027

    • Decision follows a year-long Section 301 investigation launched under Biden

    • Delay preserves leverage while easing near-term trade tensions with China

    • Move coincides with negotiations over rare earths and tech export controls

    • Broader Section 232 chip tariffs remain possible but not imminent

    The United States has opted to delay the imposition of new tariffs on Chinese semiconductor imports until mid-2027, signalling a tactical effort to manage trade tensions with Beijing even as Washington keeps the option of tougher action firmly on the table.

    News via Reuters ICYMI.

    The Office of the United States Trade Representative said it would move ahead with tariffs on Chinese “legacy” or older-generation chips following a year-long Section 301 investigation, but that the measures would not take effect until June 2027. The tariff rate itself will be announced at least 30 days before implementation, preserving flexibility for future administrations.

    The investigation into Chinese chip exports was launched under former President Joe Biden, which concluded that Beijing’s industrial policy amounted to an unreasonable effort to dominate the global semiconductor industry and posed a burden on U.S. commerce. The current administration under Donald Trump has now chosen to delay enforcement, a move widely seen as aimed at stabilising relations with China amid sensitive negotiations over technology and critical minerals.

    China responded by opposing the planned tariffs, warning that politicising trade and technology would disrupt global supply chains and ultimately prove counterproductive. Beijing also reiterated that it would take steps to defend its interests if tariffs were imposed.

    The decision to defer action comes as Washington seeks to ease pressure points in the broader U.S.–China trade relationship. China has recently imposed export curbs on rare earth metals, a key input for global technology manufacturing. In parallel talks, the U.S. has delayed restrictions on technology exports to certain Chinese firms and launched a review that could allow limited shipments of advanced chips, including some from Nvidia, to resume, despite resistance from U.S. lawmakers concerned about national security risks.

    The semiconductor sector is also watching a separate and potentially far more sweeping investigation under Section 232, which could eventually lead to tariffs on chips and chip-containing products from multiple countries. For now, U.S. officials have suggested that any such action is unlikely in the near term.

    Taken together, the delay underscores a calibrated approach: maintaining leverage over China’s chip sector while prioritising short-term trade stability and supply-chain resilience.

    —

    For U.S. technology equities, the decision to delay China chip tariffs until 2027 removes a near-term policy overhang, particularly for semiconductor names with exposure to complex global supply chains. Shares of Nvidia stand out in this context. While Nvidia’s most advanced AI chips remain tightly restricted, the administration’s willingness to review potential shipments of lower-tier processors to China, alongside the tariff delay, suggests a more pragmatic approach that prioritises trade stability and revenue continuity over immediate escalation.

    For Nvidia, China remains a strategically important market even under export controls, and clarity that new tariffs will not land imminently helps reduce uncertainty around demand, inventory planning and pricing. More broadly, the move is supportive for U.S. tech hardware firms and semiconductor suppliers, which have been navigating a patchwork of export controls, tariffs and geopolitical risks. By pushing tariff action into the next administration cycle, Washington effectively lowers the probability of sudden supply-chain disruption or retaliatory measures in the near term.

    Equity markets are likely to read the delay as modestly constructive for the sector, particularly for mega-cap technology stocks where earnings visibility and global sales exposure are key valuation drivers. However, the longer-term risk remains intact: tariffs have not been cancelled, and policy uncertainty beyond 2026 will continue to cap valuation multiples for chipmakers with meaningful China exposure.

    This article was written by Eamonn Sheridan at investinglive.com.

End of content

End of content