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Investors in Asia will look to trade data coming out of China later in the day.

Morgan Stanley sees India equity recovery as growth cycle turns

Morgan Stanley expects India’s stock market to rebound from its sharp underperformance since late 2024, saying a turning growth cycle and policy stimulus should drive a recovery. The bank described the market as entering a macro-driven phase, where broader economic trends matter more than stock selection, adding that it remains “capitalisation-agnostic.”

MS said the factors behind India’s lag — slower growth, stretched valuations, and the lack of AI-related plays — are now reversing. It expects a positive growth surprise in coming months, supported by RBI rate cuts, liquidity injections, fiscal capex front-loading, and GST reductions worth about ₹15 trillion, aimed largely at boosting consumption.

Morgan Stanley also cited a potential India–US trade deal, easing tensions with China, and policy reforms such as privatisation and bank deregulation as further tailwinds. It predicts an RBI rate cut this quarter, sees scope for upward earnings revisions, and expects improved foreign inflows as growth accelerates.

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

People’s Bank of China USD/CNY reference rate is due around 0115 GMT.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day’s trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan’s value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency’s value.

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

GBP/USD climbed on Thursday, driven into the high side by over-extended bearish price action that has plagued the pair, as well as a surprisingly close Bank of England (BoE) vote on interest rate moves that gave investors hope that the BoE might be moving to support the UK’s flagging economy despite

Gold price (XAU/USD) trades in positive territory near $3,990 during the early Asian session on Friday. The precious metal edges higher amid a weaker US Dollar (USD) and a renewal of safe-haven demand. Traders await the release of the flash U-Mich Consumer Sentiment survey later on Friday.

J.P. Morgan says BoE right to hold rates as inflation stays stubbornly high

J.P. Morgan Asset Management’s Zara Nokes said the Bank of England made the “right call” in keeping its policy rate unchanged on November 6, arguing that inflation remains far too high for the central bank to risk easing.

Nokes noted that while the labour market is cooling, other indicators — including retail sales and consumer confidence — point to a more resilient UK economy. She cautioned that household inflation expectations are rising, raising the risk of renewed price pressures.

Looking ahead, Nokes warned that the balance of risks could shift in 2026 if the UK government unveils large near-term tax hikes in the Autumn Budget, but said that until inflation shows “more meaningful progress” toward the 2 per cent target, the BoE must remain highly cautious about cutting rates.

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Goldman Sachs were tipping a cut, and have rolled that call forward to the next meeting:

• Goldman Sachs expects the Bank of England to cut rates by 25 basis points in December

More:

• BOE governor Bailey: We will have opportunity to consider the budget in the next meeting

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

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Japan Foreign Investment in Japan Stocks down to ¥690.1B in October 31 from previous ¥1344.2B

Japan Foreign Investment in Japan Stocks down to ¥690.1B in October 31 from previous ¥1344.2B

CNBC’s Jim Cramer unpacked Thursday’s market decline.