5th November 2025

MACRO

Asia Markets Plunge on Valuation Fears

Equities across Asian emerging markets suffered their steepest drop in weeks Wednesday, with South Korea’s benchmark gauge slumping more than 6%, as fears over stretched valuations eroded investors’ risk appetites. The MSCI index of emerging Asia equities shed 2.6% in its worst intraday decline since the early April “Liberation Day” tariff turmoil. Long-time Bitcoin holders have offloaded around 400,000 Bitcoin over the past month, an exodus of about $45 billion that’s left the market unbalanced. (Reuters, Bloomberg)

Democrats Sweep Key Elections

Democrats swept a trio of races Tuesday in the first major elections since Trump regained the presidency, elevating a new generation of leaders and giving the beleaguered party momentum ahead of next year’s congressional elections. Democratic socialist Mamdani triumphed in the New York mayoral race, while Democrats also won governor races in Virginia and New Jersey. (Reuters)

US-China Trade Deal Formalized

China will continue to suspend its 24% tariffs on some US goods from November 10 for one year while keeping 10% tariffs, the Ministry of Finance said. China will also remove retaliatory tariffs on US agricultural products including soybeans, corn, wheat, sorghum, and chicken. US President Trump announced a cut to fentanyl-related tariffs on Chinese imports and the continued freeze of some reciprocal levies, formalizing key elements of the sweeping Xi trade deal. Trump said he met with Swiss representatives and announced additional trade talks, as the European nation seeks to reduce a tariff rate ranking higher than any other developed nation. (Bloomberg, Reuters)

China Mandates Domestic AI Chips for State Projects

The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically-made AI chips, marking a significant escalation in tech self-sufficiency efforts. China’s Commerce Ministry is on its biggest public hiring spree this decade, bolstering the unit overseeing rare-earth curbs even as it pauses sweeping measures in a trade truce with the US. Chinese Premier Li Qiang pledged to further open the country’s vast consumer market to international businesses after the US trade deal, saying China’s economy will exceed 170 trillion yuan ($23.87 trillion) by 2030, projecting annual growth of 4.17% over the next five years. (Reuters, Bloomberg)

China Services Growth Slows

China’s services activity expanded in October but at its slowest pace in three months, as a decline in overseas orders offset the boost from improved domestic demand. Some veteran Chinese asset managers are freezing subscriptions to their funds, an indication that stocks are too expensive now after a blistering run. (Reuters, South China Morning Post)

BOJ Minutes Show Growing Rate Hike Support

BOJ minutes from the September meeting showed a growing number of policymakers who believed conditions were falling into place for interest rates to rise, with two members advocating an immediate increase. Japan’s military deployed troops to the country’s mountainous north Wednesday to help trap bears after an urgent request from local authorities struggling to cope with a wave of attacks. (Reuters)

UK Budget Pressures Mount

British money managers are reporting a jump in people withdrawing cash from their pensions before this month’s budget, amid fears for their tax advantages as the government warns of “hard choices” to prop up public finances. The Office for Budget Responsibility is poised to hand Labour’s Reeves a hit of as much as £20 billion by lowering UK productivity estimates by 0.3 percentage points. NIESR, a leading think-tank, said Reeves needs major tax rises in her November 26 budget or risk a repeat of the loss of market confidence that cost former PM Liz Truss her job, calling on Reeves to build £30 billion of margin for error against economic shocks. (Reuters, Bloomberg)

UK Wage Growth Holds Steady

Pay settlements awarded by British employers held steady in the three months to September, with the median pay rise at 3% in the July-September period, holding at the joint lowest level since December 2021—data released a day before the Bank of England’s interest rate decision. (Reuters)

New Zealand Unemployment Hits Eight-Year High

New Zealand’s jobless rate rose to 5.3% in Q3, its highest level since 2016, as employment remained unchanged. The kiwi hit a seven-month low after weak jobs data. (Reuters)

GEOPOLITICAL

Taiwan Revokes Chinese Dual Citizens

Taiwan has revoked the citizenship of 50 individuals who also held mainland Chinese passports and household registrations, citing the need to curb infiltration. North Korea is preparing for a potential summit meeting between leader Kim Jong Un and President Trump as the idea was broached during Trump’s recent Asia visit, based on an assessment by South Korea’s National Intelligence Service. (South China Morning Post, Bloomberg)

EQUITIES

AMD Disappoints Despite Beat

Advanced Micro Devices failed to impress investors with its revenue forecast, despite it sitting comfortably above analyst forecasts, after an eye-popping rally sent expectations soaring. The disappointment contributed to broader tech sector weakness in Asian trading. (Bloomberg)

Google-Wiz Deal Clears Major Hurdle

Alphabet’s Google and cybersecurity company Wiz cleared a key hurdle to closing their $32 billion deal, with the US government saying it would wrap up its investigation of the acquisition. (Bloomberg)

Tencent AI Scientist Raises $50 Million

The scientist who oversaw development of Tencent Holdings’ flagship AI model has raised $50 million with a startup planning to release a rival to OpenAI’s Sora, the latest high-profile entry in one of the more profitable AI spheres. (Bloomberg)

Country Garden Wraps Debt Restructuring

Country Garden Holdings, one of the biggest casualties of China’s real estate crisis, is wrapping up its $14.1 billion offshore debt restructuring after more than two years, with creditors likely to approve its plan in a Wednesday vote. (Bloomberg)

Auto Sector Shows Divergence

Toyota raised its full-year profit forecast Wednesday, betting that cost-cutting and strong hybrid demand would help it ride out Trump’s tariff impact. However, Nissan will cut production of its top-selling Rogue SUV in Japan from next week due to chip shortages from Dutch firm Nexperia, the latest fallout from diplomatic turmoil involving the chipmaker. BMW’s profit margin came in toward the lower end of guidance in Q3 as tariffs and intense China competition cut into earnings. (Reuters, Bloomberg)

UK Retail and Pharma Struggles

Marks & Spencer reported a 55.4% slide in first-half underlying profit, reflecting the impact of an April cyber hack that forced it to suspend online clothing orders for seven weeks. The company expects profit to rebound in the second half. UK pub chain JD Wetherspoon projected a more cautious outlook for the rest of the year ahead of the upcoming budget, posting a sales growth slowdown due to consumer spending squeeze. Novo Nordisk lowered its full-year profit forecast Wednesday in an early blow to the Danish drugmaker’s new CEO amid a deep restructuring drive. (Reuters, Bloomberg)

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