• Most Asian markets fell on Tuesday, tracking overnight weakness in Wall Street as strong U.S. job market data fueled expectations of higher interest rates for longer. Chinese markets were the exception, surging on stimulus optimism as trade resumed after a week-long holiday.
  • The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose between 6% and 8% in early trade. Investors reacted positively to a series of stimulus measures announced by Beijing, including interest rate cuts, looser property market rules, and liquidity injections for the stock market as it was the first open day after Golden Week.
  • Other Asian markets declined, with technology stocks seeing the biggest losses. Hong Kong's Hang Seng index slid nearly 5.6%, Japan's Nikkei 225 fell 1.2%, and South Korea's KOSPI lost 0.7%. Hang Seng China Enterprises Index CHN.cash lost 6.3% of its value.
  • U.S. stock index futures were muted in Asian trade after Wall Street fell sharply on Monday. Traders are pricing in a smaller rate cut from the Federal Reserve in November following strong jobs data.
  • The dollar retreated slightly from seven-week highs, with the dollar index falling about 0.2%. Traders are now pricing in a nearly 81% chance of a 25 basis point rate cut in November, with a 19% chance of no change.
  • Oil prices fell in Asian trade, retreating from more than one-month highs reached last week. Brent oil futures expiring in December fell 1.6% to $79.74 a barrel, while West Texas Intermediate crude futures fell 1.8% to $75.96 a barrel.
  • Foxconn announced it is building the world's largest manufacturing facility for Nvidia's GB200 chip to meet "awfully huge" demand for the AI company's Blackwell platform.
  • Japan's inflation-adjusted wages fell 0.6% in August from a year earlier, while household spending declined 1.9%. However, analysts suggest underlying trends point to a gradual recovery in pay and consumption.
  • Australia's central bank signaled it will hold interest rates at the current 12-year high until confident that inflation is moving sustainably toward target. The RBA board discussed scenarios for both tightening and easing policy given economic uncertainties.
  • The conflict in the Middle East remains a key focus for markets, with fighting between Israel and Hezbollah forces intensifying this week. Concerns over potential oil supply disruptions continue to support crude prices.
  • Euro is the strongest currency today and gaining to most of the FX pairs. AUD is losing its value after RBA decided to hold interest rates.
  • Cryptocurrency market opens red today. Bitcoin is losing 1.4%, Ethereum is down 1.2% and Solana is more than 2% in red and approaching key support.
  • Gold remains flat aroung $2642 an ounce, Silver has lost 1% of its value today, similar loss as Platininum.
 

Source: xStation