Oct 05 ,2025
Synopsis:
Asian markets set for positive start to Monday trade. Futures signaling opening rally in Japan following weekend political developments. Australia opens with mild gains while Hong Kong tracking for flat start. Mainland China remains shut for Golden Week holiday. S&P 500 futures up slightly after US markets capped off weekly rebound to new all-time highs. Yen under pressure in wake of Takaichi's victory. Crude strengthening after OPEC+ production hike came in less than speculated last week. Gold firming to fresh record high. Bitcoin closing in on record high..
Sanae Takaichi voted in as new LDP president, set to become Japan's first female prime minister within two weeks when Diet reconvenes. Takaichi's win considered an upset given Shinjiro Koizumi was favored to win. Takaichi's advocacy for cost-for-living relief (and associated implications for fiscal deficit and JGB issuance), seen fueling upward pressure on longer-dated yields. Arguments for weaker yen based in part on her past criticisms of BOJ tightening while her pro-growth stance viewed as conducive for domestically focused equities.
China pushing for more concessions on trade with Bloomberg sources noting Beijing has offered $1T US investment pledge in return for reduced tariffs on imported inputs used by US-built Chinese factories. China also wants softened national security restrictions on proposed Chinese investments in US and is reportedly pressing Trump to align US policy on Taiwan closer to Beijing's. Soybeans another source of tensions with Trump taking aim at China's move to halt purchases from US and vowing to raise issue with Xi later this month.
Pre-open Company News:
2317.TT -- Hon Hai Precision Industry reports Q3 revenue NT$2057.4B vs FactSet NT$2099.11B; expects to maintain sequential quarterly growth in Q4
1909.HK -- Fire Rock Holdings to launch one (1) for two (2) rights issue at HK$1.58/rights share
3750.HK -- Contemporary Amperex Technology downgraded to neutral from overweight at JPMorgan
8729.JP -- Sony Financial Group initiated buy at BofA
9863.HK -- Zhejiang Leapmotor Technology upgraded to neutral from sell at UBS
1928.HK -- Sands China initiated outperform at Haitong
6808.HK -- Sun Art Retail Group downgraded to neutral from outperform at Macquarie
On Deck:
Japan:
Earnings:
DISCO Corp. (6146.JP), Create SD Holdings (3148.JP), Nextage (3186.JP), Hiday Hidaka (7611.JP), Ichibanya (7630.JP), Tosei Corp (8923.JP)
Thailand:
Economic:
07:00 SAST: CPI NSA Y/Y; consensus (0.6%)
Market Data:
Gold (Dec 25): +$26.70 or +0.68% to $3935.60
WTI Crude (Nov 25): +$0.66 or +1.08% to $61.54
$-¥: +2.00 or +1.36% to 149.4550
$-KRW: (1.51) or (0.11%) to 1406.0600
A$-$: (0.00) or (0.18%) to 0.6592
$-INR: (0.00) or (0.00%) to 88.7351
$-CNY: (0.00) or (0.01%) to 7.1185
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