- Japan's Akazawa says there will be no FX impact from Japan's USD550bn investment in the US
- Report that BHP iron ore from the Australia blocked by China not true says analyst
- ECB seeks ban on multi-issuance stablecoins, eyes digital euro launch in 2029
- Taiwan rejects U.S. push to move half of chip production to America
- China’s new K visa targets foreign STEM graduates as U.S. slams the door shut
- ICYMI - China bans all BHP iron ore cargoes as pricing dispute escalates
- Japan September final manufacturing PMI 48.5 (flash was 48.4)
- OPEC+ weighs bigger November oil hike, up to 500,000 bpd under discussion
- South Korea and the US have both agreed to avoid manipulating FX rates. LOL.
- BOJ Tankan comment - Firms divided on how they see US tariff impact
- Bank of Japan Tankan: Large manufacturing index (Q3) 14.0 (vs exp. 15.0, prior 13.0)
- Axios says a US government shut down is now "virtually inevitable".
- China is shutting down too! Golden Week holidays begin today.
- Fed's Logan says more to be done to hit 2% inflation target
- JPMorgan tips shutdown lasting up to two weeks, warns of market disruption
- US Democrats bill to avoid shut down fails to pass in Senate - Republicans oppose
- Goldman Sachs: Equity markets betting on soft landing support by Fed cuts, fiscal stimulus
- ICYMI: Goldman sees OPEC+ raising November oil quotas by 140,000 barrels a day
- New Zealand data: Building permits +5.8% m/m in August (prior was +5.3% in July)
- ICYMI: OPEC rejects reports of G8 plan to boost oil output by 500,000 barrels a day
- Oil: private survey of inventory shows a large headline crude oil draw vs build expected
- investingLive Americas FX news wrap 30 Sep: USD moves lower. A US shutdown looking likely.
- Trump says good will come from shutdown, going to be laying off a lot of people
China began its Golden Week holiday on Tuesday, with mainland markets shut through October 8. Hong Kong markets were also closed today.
The Australian dollar underperformed after a Bloomberg report said China’s state-run iron ore buyer, China Mineral Resources Group (CMRG), had told steelmakers to halt new dollar-denominated purchases from BHP. But Chinese commodity pricing firm Mysteel, cited by the Australian Financial Review, disputed the story, saying no such notice had been given and calling the rumour unfounded. NZD and CAD were also slightly weaker, while EUR, GBP, CHF and JPY saw little net change.
In Japan, the BoJ’s Tankan survey showed a modest improvement in sentiment among large manufacturers, suggesting the export-heavy economy is withstanding U.S. tariffs for now and keeping alive the prospect of another rate hike this month. At the same time, the final September manufacturing PMI confirmed factory activity contracted at the fastest pace in six months, with new orders and hiring both falling. That weaker read offsets some of the hawkish Tankan signal.
South Korea reported exports fell 6.1% y/y in September, the sharpest drop since February, after three straight months of gains. Officials pointed to front-loaded shipments as a factor, though the data could nudge the Bank of Korea toward resuming rate cuts when it meets on October 23. Separately, Seoul and Washington issued a joint statement pledging not to manipulate exchange rates for competitive advantage.
Commodities saw fresh strength, with gold touching another high.
From the U.S., Dallas Fed President Lorie Logan warned that inflation expectations “cannot be taken for granted” and said more labour market slack may be needed to return inflation to 2%. She noted non-housing services inflation could climb to 2.4% excluding tariff effects, while also highlighting resilient consumption and investment. Logan stressed caution over further cuts, but gave no signal on how far the Fed can ease before reaching neutral.
Asia-Pac stocks:
- Japan (Nikkei 225) +0.52%
- Hong Kong (Hang Seng) Closed
- Shanghai Composite Closed for Golden Week holidays
- Australia (S&P/ASX 200) -0.34%
