- Asian markets traded mixed, with Japanese stocks outperforming as the Nikkei 225 and TOPIX rose 1% and 0.9% respectively. The gains came despite political uncertainty after Japan's ruling coalition lost its parliamentary majority. Nippon Paint Holdings surged 24% on news of its AOC acquisition.
- Japanese yen steadied after sharp losses, with Finance Minister Kato warning authorities are monitoring currency volatility. Political uncertainty has raised expectations of increased fiscal spending and limited BOJ rate hike capacity.
- Most Asian markets remained flat ahead of major tech earnings. China's CSI 300 and Shanghai Composite both dipped 0.1%, while Hong Kong's Hang Seng added 0.3%. South Korea's KOSPI fell 0.3%, and Australia's ASX 200 gained 0.5%.
- Wall Street futures were flat in Asian trade as markets await earnings from tech giants. Alphabet reports today, followed by Meta and Microsoft tomorrow, with Apple and Amazon due Thursday.
- Gold prices approached record highs again, rising 0.4% to $2,753.60 an ounce amid safe-haven demand ahead of the U.S. presidential election. Recent polls show a tightening race between Trump and Harris.
- Oil prices stabilized after Monday's 6% plunge, with Brent crude at $70.92 and WTI at $67.45. Markets viewed Israel's weekend strike on Iran as targeted and unlikely to escalate, while demand concerns persist.
- Bitcoin continued its strong performance, gaining 1.8% to reach $71,000, while Ethereum also rose 2%.
- Hong Kong home prices fell for the fifth straight month in September (-1.7% MoM), though analysts expect the market to bottom out soon following recent policy support.
- Key events ahead: U.S. Q3 GDP data (Thursday), PCE price index and nonfarm payrolls (Friday), China PMI data (Thursday), and the Bank of Japan policy meeting this week.
- Focus remains on U.S.-Taiwan relations after a senior U.S. diplomat arrived in Taipei, while Trump's recent comments about Taiwan's chip industry and defense needs sparked concern, with TSMC shares falling over 2%.
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