Oct 07 ,2025
Synopsis:
Asian markets set for positive start to Wednesday trade. Futures signaling opening gains in Japan and Hong Kong. Mild opening declines in Australia. Mainland China remains closed for Golden Week holiday. S&P 500 futures flat afterhours following tech- and small cap-led retreat overnight. Australian bonds rebounding following downshift in Treasury yields. FX markets unchanged after yen fell to Feb-2025 lows against dollar. Crude advancing from overnight close. Gold steady after topping $4K for first time. Bitcoin pulled back from record high.
Tech underperformance the big story overnight with SOX index down 2%. After big tailwind from AMD and OpenAI deal announcement on Monday, flurry of articles have highlighted bubble/circularity/ROI/productivity concerns while questions being raised about OpenAI's ability to fund the $1T of deals it has signed so far in 2025. Negative sentiment also attributed to report in The Information that highlighted financial challenges ORCL is facing in renting out NVDA chips.
RBNZ tentatively expected to cut OCR by 25 bp to 2.75% at today's meeting, though no clear consensus among economists with calls split between 25 bp and 50 bp reduction. 50 bp camp basing calls primarily on New Zealand Q2 GDP contraction that was much worse than RBNZ projected. Market-implied odds of a 50 bp move also rose to 40% following quarterly survey showing deterioration in business confidence. Those backing 25bp rate cut argue smaller move accompanied by dovish messaging will give RBNZ time to assess upcoming data.
BOJ Governor Ueda to speak Thursday with his remarks getting extra attention in light of Takaichi's LDP leadership victory that drew attention to her past criticisms of rate hikes. While Takaichi has since toned down her criticisms, her economic adviser this week said October too early for rate hike. OIS also pricing in just ~20% chance of October rate hike following her win compared to ~68% a week earlier. Ueda largely stuck to script on Friday in reiterating that rate hikes will continue if economic and price developments track expectations.
Pre-open Company News:
3405.JP -- Kuraray completes up to 22.0M-share buyback
2303.TT -- United Microelectronics reports September revenue NT$19.93B, +5.2% y/y
8153.JP -- MOS FOOD SERVICES reports September MOS BURGER same-store sales +7.7% y/y
3017.TT -- Asia Vital Components reports September revenue NT$14.50B, +128.4% y/y
2885.TT -- Yuanta Financial Holding reports September net income NT$3.42B; StreetAccount notes year-ago figure was NT$2.42B
General Insurance Council reports provisional September non-life gross premium INR311.78B vs year-ago INR275.50B
3036.TT -- WT Microelectronics reports September consolidated revenue NT$134.95B, +59.7% y/y
543248.IN -- Restaurant Brands Asia interim CFO Sumit Zaveri steps down, effective today
MBS.VN -- Insider transaction: MB Securities chairman Le Viet Hai discloses disposal of 56.0M shares
500570.IN -- JLR reports Q2 retail sales 85,495 units, (17.1%) y/y
1833.HK -- Ping An Healthcare and Technology chairman and CEO Dou Li resigns due to personal work arrangement, effective today
+NEUT -- Neutrans Inc. files IPO to offer ~1.9M shares in the range of $4-6 per share - F-1
On Deck:
China:
Economic:
08:00 CST: M2 NSA Y/Y; consensus +8.6%
08:00 CST: New Yuan Loans; consensus
08:00 CST: Loan Growth Y/Y; consensus
Japan:
Earnings:
Welcia Holdings (3141.JP), ABC-MART (2670.JP), KOMEDA Holdings (3543.JP), BELLSYSTEM24 Holdings (6183.JP), Mani Inc (7730.JP)
Taiwan:
Economic:
16:00 TST: CPI NSA Y/Y; consensus +1.6%
Market Data:
Gold (Dec 25): +$7.00 or +0.17% to $4011.40
WTI Crude (Nov 25): +$0.41 or +0.66% to $62.14
$-¥: +1.65 or +1.10% to 151.9990
$-KRW: +3.86 or +0.27% to 1414.5600
A$-$: (0.00) or (0.56%) to 0.6581
$-INR: +0.02 or +0.02% to 88.7426
$-CNY: (0.00) or (0.01%) to 7.1186
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