Dec 16 ,2025
Synopsis:
Asian markets set for cautious start to Wednesday trade. Futures signaling opening gain in Japan, and flat start in Hong Kong. Mild opening decline in Australia. S&P 500 futures easing afterhours after index logged third straight decline. Australian bond yields down 1-2 bp at long end after Treasuries firmed across the curve. FX markets steady after dollar index fell to early October lows. Crude nursing heavy losses with WTI at four-year low. Gold unchanged. Bitcoin steady after rebounding from earlier lows.
Not much direction from US November nonfarm payrolls, which showed headline beat but unexpected rise in jobless rate. Market pricing little changed in immediate aftermath with futures pricing in ~28% chance of January rate cut vs ~22% before. Markets awaiting further catalysts including Micron (MU) earnings, coming at a time of increased scrutiny on AI trade. US November CPI may shape near-term Fed rate expectations. BOJ widely expected to hike on Friday as attention shifts to rate outlook beyond December.
China market pullback got some attention Tuesday with key indexes entering correction or bear market territory. While several reasons given for the pullback, including softening economic momentum and disappointment over lack of stimulus signals from CEWC. However, China media this week emphasizing focus on expanding domestic demand as a top priority in 2026 with policies to be rolled out aimed at boosting consumption. Discussions have also highlighted clear policy signals to stabilize and revive investment via central budget.
In overnight developments, BofA Asia FMS showed economic growth prospects edged lower while China dropped to net underweight. November BOK minutes showed board member concern about financial stability risks and FX volatility augured for keeping rates unchanged. RBNZ announced reduced capital requirements for banks it expects will reduce lending costs. Nikkei learned Japan lawmakers weighing new taxes on EVs and hybrids.,
Pre-open Company News:
4151.JP -- Kyowa Kirin downgraded to sell from neutral at Goldman Sachs
2601.HK -- China Pacific Insurance (Group) reports Jan-Nov premium income
AJBU.SP -- Keppel DC REIT acquires remaining interest in Keppel DC Singapore 3, 4 from Keppel Ltd for S$55.M
T82U.SP -- Acrophyte Asset Management proposes to acquire Suntec REIT manager; terms undisclosed
002518.CH -- Shenzhen Kstar Science & Technology initiated buy at UBS
F13.SP -- Fu Yu Corp. announces reassignment of COO and Deputy COO
2577.HK -- InnoScience (Suzhou) Technology Holding Co., Ltd. initiated overweight at China Post Securities (timing uncertain)
5285.MK -- SD Guthrie reports November production data
HHS adds Duchenne muscular dystrophy (DMD) and Metachromatic Leukodystrophy (MLD) to newborn screenings
EGCO.TB -- Electricity Generating Public completes acquisition of additional 10% stake in Linden TopCo
69.HK -- Shangri-La Asia CFO Chua Chee Wui to step down, effective 30-Mar
532927.IN -- eClerx Services raise up to INR3.00B share buyback offer from INR4,500/share to INR4,800/share
3887.HK -- HashKey Holdings prices 240.6M-share Hong Kong IPO at HK$6.68/share
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Japan:
Economic:
08:50 JST: Import NSA Y/Y (Preliminary); consensus +4.6%
08:50 JST: Export NSA Y/Y (Preliminary); consensus +5.7%
08:50 JST: Core Machinery Orders ex-Electric Power Companies & Ships SA M/M; consensus (2.4%)
08:50 JST: Trade Balance NSA (Preliminary); consensus +¥100T
Malaysia:
Earnings:
Top Glove Corp. (7113.MK)
Market Data:
Gold (Feb 26): +$3.00 or +0.07% to $4335.30
WTI Crude (Jan 26): $0.00 or 0.00% to $55.27
$-¥: (0.46) or (0.30%) to 154.7540
$-KRW: +3.06 or +0.21% to 1471.7300
A$-$: (0.00) or (0.13%) to 0.6634
$-INR: +0.26 or +0.28% to 90.9488
$-CNY: (0.01) or (0.10%) to 7.0410
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