PBOC adviser publicly questions sustainability of US fiscal trajectoryGoldman raises gold forecast to $5,400 (up $500) as private and central-bank demand buildsNikkei set to snap long losing streak as JGBs rally and tariff fears easeHere we go again … WSJ: US seeks Cuba regime change after Venezuela precedentChina silver exports hit 16-year high in 2025 despite control fearsBridgewater stays bullish on China after 45% onshore fund gainPBOC sets USD/ CNY reference rate for today at 7.0019 (vs. estimate at 6.9697)Australia jobs surge in December, lifting AUD and RBA rate hike expectationsJapan trade data recap – exports rise again in December, but US demand dragsAustralian December 2025 unemployment rate 4.1% (expected 4.4%, prior 4.3%)Retired jet engines spark debate over power source for AI data centresJapan data: December trade surplus smaller than expected (import jump, export growth slow)South Korea economy contracts in Q4 as growth sharply misses forecastsJapan bond market rattled as Takaichi tax cut pledge tests fiscal trustIEA lifts oil demand forecast but warns surplus will persist in 2026New Zealand core retail sales fell in December both m/m and y/yOil: Private survey of inventory shows a headline crude oil build greater than expectedinvestingLive Americas market news wrap: Trump says no tariffs over Greenland
At a glance:
South Korea’s Q4 GDP unexpectedly contracted, highlighting macro weakness, though equities surged to record highs on improved global risk sentiment.
Japan’s exports rose for a fourth month but missed forecasts, while USD/JPY remained volatile ahead of the Bank of Japan meeting.
Australia’s jobs data smashed expectations, lifting the AUD and pulling forward RBA rate-hike pricing.
Regional FX moves were driven by shifting rates expectations and easing tariff rhetoric.
Gold traded sideways, consolidating near recent highs.
South Korea’s economy contracted 0.3% q/q in Q4, sharply missing expectations for modest growth. Investment, construction and exports all weighed on activity, while full-year GDP slowed to 1.0%, marking the weakest annual expansion since 2020 and reinforcing concerns about underlying momentum.
However, the growth disappointment was largely ignored by equity markets. South Korea’s stock benchmark surged past 5,000 points for the first time, powered by strong gains in chipmakers. The index is now up around 19% for the month, buoyed by improved global risk sentiment. Donald Trump backed away from fresh tariff threats against European nations, helping ease broader market weakness.
In Japan, exports rose 5.1% y/y in December, extending the recent run of gains but falling short of forecasts as shipments to the US dropped sharply. Imports beat expectations, narrowing the trade surplus. The yen was choppy: USD/JPY initially climbed toward 158.50, slipped back to around 158.20, and then weakened again, pushing above 158.60 as the session progressed. Japanese government bond yields continued to calm following their sharp surge earlier in the week. The Bank of Japan meets today and tomorrow, with an on-hold decision widely expected ahead of further policy normalisation later in the year.
Australia delivered the standout data. Employment jumped 65.2k in December, far exceeding forecasts, while the unemployment rate fell to 4.1%. The strength of the report lifted the Australian dollar and pushed markets to price roughly a 50% chance of a February rate hike from the Reserve Bank of Australia. The AUD surged to a 15-month high on the release and has since extended gains, with the NZD rising in sympathy, though to a lesser degree.
Gold was little changed, trading sideways around US$4,800 as markets consolidated after recent strong gains.
Asia-Pac
stocks:
Japan
(Nikkei 225) +2%, breaking
its run of 5 days of consecutive lossesHong
Kong (Hang Seng) -0.1%
Shanghai
Composite -0.15%Australia
(S&P/ASX 200) +0.7%
This article was written by Eamonn Sheridan at investinglive.com.