1.Asia-Pacific markets trade mixed as investors assess intensifying China-Japan tensions
Asia-Pacific markets traded mixed on Monday as investors assessed rising friction between Japan and China after Beijing warned its citizens about travel and study plans in Japan. Japan’s benchmark slid 0.63% while the Topix lost 0.44% as tourism-exposed stocks slumped. Japan’s economy also contracted by a smaller-than-expected 0.4% in the quarter ended September, compared to the previous one. South Korea’s Kospi jumped 1.78% while the small-cap Kosdaq added 0.68%. Hong Kong’s Hang Seng index lost 0.51%, while the mainland CSI 300 was flat. Australia’s benchmark S&P/ASX 200 was 0.26% lower. Traders were also watching Thailand’s third-quarter GDP and Singapore’s balance of trade later in the day.
2. Nasdaq closes higher, snapping three-day losing streak as tech stocks recover some ground
The Nasdaq Composite rebounded on Friday as investors bought up shares of key technology stocks a day after the group led Wall Street to its worst day in more than a month. The tech-heavy Nasdaq gained 0.13% to finish at 22,900.59, snapping a three-day losing streak. The S&P 500 finished near the flatline, down just 0.05% at 6,734.11, while the Dow Jones Industrial Average lost 309.74 points, or 0.65%, to settle at 47,147.48. The three indexes bounced back significantly from their lows earlier in the day, which had the Nasdaq and S&P 500 down 1.9% and about 1.4%, respectively. The Dow had fallen almost 600 points, or roughly 1.3%. Major U.S. indexes on Thursday posted their worst one-day performance since Oct. 10. The 30-stock Dow lost about 800 points, taking back gains seen in Wednesday’s session when it crossed the 48,000 level.
3. Gold prices fell to $4,050 per ounce on Monday, extending losses for a third consecutive session
Gold prices fell to $4,050 per ounce on Monday, extending losses for a third consecutive session, as investors braced for a flood of delayed US economic data set to be released this week. September’s non-farm payrolls report on Thursday, will be closely watched for insights into the health of the American economy and the likely path of the Federal Reserve’s interest rates. Expectations for a December rate cut have diminished following hawkish comments from Fed officials last week, with markets now assigning a 46% probability, compared to over 60% earlier this month. Still, bullion is up about 55% so far this year, on track for its strongest annual gain since 1979, buoyed by robust central bank buying and sustained demand from investors seeking protection against rising fiscal and geopolitical risks.
4.WTI crude fell to on Monday, paring gains from the previous session
WTI crude oil futures fell to $59.5 per barrel on Monday, paring gains from the previous session after Russia’s Novorossiysk port resumed operations following a two-day shutdown caused by a Ukrainian drone strike. Reports indicated that two crude tankers were moored at the port on Sunday, signalling ongoing activity at the terminals. The disruption at Russia’s second-largest oil export hub had pushed crude prices up more than 2% on Friday to close the week with a modest gain. Meanwhile, President Trump on Sunday said that Republicans are drafting a bill to sanction any country trading with Russia and mentioned that Iran could be added to the list.
5.Japan’s economy contracts for the first time in six quarters as exports, residential investment drag
Japan’s economy contracted by a smaller-than-expected 1.8% in the third quarter on an annualized basis, with growth in private and government consumption limiting the decline. On a quarter-on-quarter basis, GDP in the three months to September contracted for the first time in six quarters, falling 0.4%, government data released Monday showed. The fall in growth, however, was softer than Reuters poll estimates of a 2.5% annualized contraction and a 0.6% sequential drop. Public demand grew 2.2% annualized, supported mostly by government consumption, while private demand fell 1.8%, dragged lower by a more than 32% drop in residential investments. Exports shrank 4.5% in the third quarter on an annualized basis and 1.2% compared to the second quarter when they had risen by 2.3%.
6. New York Fed met with Wall Street firms about key lending facility
New York Federal Reserve President John Williams met with Wall Street’s dealers last week about a key lending facility, the Financial Times reported, citing three individuals familiar with the matter. The meeting, which took place on the sidelines on Wednesday at the Fed’s annual Treasury market conference, included representatives from many of the 25 primary dealers of banks that underwrite the government’s debt, according to the report. The meeting participants were members of banks’ teams that specialize in fixed income markets, the report said. Williams sought feedback from these dealers on the use of the Fed’s standing repo facility — a permanent lending tool that allows eligible financial institutions to borrow cash from the central bank in return for high-quality collateral such as Treasury bonds.
7. Trump cuts tariffs on goods like coffee, bananas and beef in bid to slash consumer prices
President Donald Trump on Friday exempted key agricultural imports like coffee, cocoa, bananas and certain beef products from his higher tariff rates. The move comes as Trump faces political blowback for high prices at U.S. grocery stores. Some distributors of beef, coffee, chocolate and other common food items have raised prices as Trump’s tariffs took hold this year, adding to pressure on household budgets created by decades-high inflation in recent years. Trump’s action Friday also exempts a range of fruits including tomatoes, avocados, coconuts, oranges and pineapples. Along with coffee, the tariff reductions extend to black and green tea, and spices like cinnamon and nutmeg. The move marks a reversal for Trump, who has insisted tariffs are necessary to protect U.S. businesses and workers. He has contended U.S. consumers will not ultimately pay for the higher duties.
8. China to strengthen fiscal policy, finance minister says in Xinhua interview
China will strengthen fiscal policy over the next five years, said the country’s finance minister on Saturday in an interview with Xinhua News Agency. Finance Minister Lan Foan said the country will strengthen counter-cyclical and cross-cyclical regulation and set the deficit-to-GDP ratio and scale of government borrowing to suit evolving conditions. China will also make use of tools such as the budget, taxation, government bonds and transfer payments, and provide sustained support for economic and social development, Lan said. Internationally, the external environment is volatile and unstable, and major-country rivalry is becoming more intricate and intense, said Lan, without mentioning any specific countries or China’s trade dispute with the United States.
9. Alibaba launches Qwen App in public beta to expand consumer AI push
Alibaba Group launched the public beta of its new Qwen App on Monday, marking its strongest push yet into the consumer artificial intelligence market. The app is powered by the company’s latest Qwen3 model and is intended to bring its AI capabilities directly to everyday users. The Qwen App is now available for free in China on iOS, Android, web, and PC platforms. It will serve as the main consumer interface for the company’s flagship Qwen series of models, the company said in a statement. Alibaba said an international version of the app designed for users outside China will be introduced later. The company describes Qwen as a smart personal assistant designed to carry out tasks and not just hold conversations. The app provides tools for deep research, AI-assisted coding, camera-based features, and voice interactions.
10. Alphabet shares eye strong gains after Berkshire discloses $4.3 bln stake
Google owner Alphabet Inc shares are headed for strong gains on Monday, 24-hour trading data showed, after Warren Buffett’s Berkshire Hathaway disclosed a $4.3 billion stake in the firm. Alphabet Inc shares rose 6.1% to $293.40 in afterhours trade, 24-hour trading data from Robinhood showed on Sunday evening. The stock had risen as far as 7%. Gains in the stock come after Berkshire Hathaway late last week disclosed it had taken a $4.3 billion stake in the Google parent, making it its tenth-largest U.S. stock holding. The hedge fund further trimmed its stake in Apple Inc and Bank of America Corp. Apple still remained the hedge fund’s largest stock, even as the firm steadily trimmed its holdings this year and built up its cash balance. The rationale behind the Alphabet acquisition was not immediately clear. Buffett had in 2019 lauded Alphabet’s advertising business, and had also lamented not investing in the firm earlier.
11. Samsung, Hyundai announce domestic investments after US-South Korea trade deal
Samsung Electronics, Hyundai Motor and other major South Korean manufacturers on Sunday unveiled domestic investment plans, as a U.S. trade deal raised concern investment in the U.S. could weaken manufacturing at home. Samsung Electronics will add a chip production line at its plant in the South Korean city of Pyeongtaek to meet rising demand amid the global boom in artificial intelligence, as part of the parent group’s 450 trillion won ($310.79 billion) investments at home over the next five years, the company said. Samsung’s announcement came as South Korean President Lee Jae Myung held a meeting on Sunday with the country’s business leaders, after a U.S. trade deal including a South Korean promise to invest $350 billion in U.S. strategic sectors was finalised on Friday.
12. Tesla requires suppliers to avoid China-made parts for US cars
Tesla is now requiring its suppliers to exclude China-made components in the manufacturing of its cars in the United States, according to reports on Friday. The Elon Musk-led automaker and its suppliers have already replaced some China-made components and aim to switch all other components to those made outside of China in the next year or two, the report said, citing people familiar with the situation. Tesla did not immediately respond to a Reuters’ request for comment outside regular business hours. Executives have struggled with fluctuating tariffs in the U.S.-China trade dispute, complicating pricing strategies, the article added. Tesla has been increasing North American sourcing for its U.S. factories for two years amid tariff threats, Reuters reported in April.