Nomura flags Asia policy split as Fed seen cutting twice in 2026Washington delays semiconductor tariffs as it seeks China trade truceKRW up: South Korea NPS activates strategic FX hedging to curb won weakness and volatilityPBOC sets USD/ CNY reference rate for today at 7.0471 (vs. estimate at 7.0240)ICYMI – Tesla sales plummet in UK and Europe as EV market turns hostileJapan policymakers flag inflation persistence and asset-price risks in October BoJ minutesBank of Japan Services Producer Price Index (November) +2.7% y/y (expected & prior 2.7%)ICYMI – Rising yields force Japan to budget for higher debt-servicing costsOil: Private survey of inventory shows a headline crude oil build vs. draw expected
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.