- South Korea’s won firms as pension fund weighs dollar bond issuance
- Bank of England set to hold rates February 5 as inflation cools but wage risks linger
- Markets cautious on Warsh-led Fed outlook as rate pricing holds steady
- China services PMI rises to three-month high as demand and hiring improve
- Nomura sees BoJ rates rising to 1.5% by 2027, with hawkish risks beyond
- PBOC sets USD/ CNY mid-point today at 6.9533 (vs. estimate at 6.9385)
- Japan services PMI hits 11-month high as demand and hiring strengthen
- New Zealand Commodity Price Index rose in January
- PBOC to inject 800 billion yuan via three-month reverse repo operation
- Yuan seen rising in 2026, but China signals resistance to rapid gains
- Powell pardon won’t lift Fed blockade as Tillis holds line on investigation
- AMD shares fall as AI outlook disappoints despite strong Q4 earnings beat
- New Zealand jobs report shows firmer hiring but unemployment edges to a 10 year high
- Australia services PMI hits near four-year high as demand surges in January
- New Zealand Q4 2025 unemployment rate 5.4% (expected 5.3%, prior 5.3%)
- Oil: Private survey of inventory shows a large headline crude oil draw vs. build expected
- investingLive Americas market news wrap: US House votes to end government shutdown
At a glance:
Asia equities mostly weaker following a poor Wall Street lead
Yen weakened further, with USD/JPY back above 156
NZD slightly softer after Q4 jobs data showed higher unemployment
AMD shares slid sharply on disappointing guidance despite an earnings beat
PMI data across Australia, Japan and China pointed to improving activity momentum
Regional equities were mostly lower in the session, tracking a weak lead from Wall Street. Indian shares opened on the back foot but turned positive as the session progressed, continuing to draw support from optimism around the US–India trade deal.
In FX, the yen lost ground again, with yen crosses pushing higher and USD/JPY moving back above 156.20. Elsewhere, moves across major currency pairs were relatively subdued. NZD/USD edged slightly lower following the release of New Zealand’s Q4 2025 employment report, which showed the unemployment rate rising to 5.4%, its highest level in a decade. Despite the headline increase, the details of the report were viewed more constructively, limiting downside pressure on the kiwi.
On the corporate front, Advanced Micro Devices reported fourth-quarter earnings after the US close. While the chipmaker beat expectations on both revenue and profit, its forward guidance fell short of more optimistic forecasts, triggering a sharp sell-off in extended trading.
In US politics, Donald Trump signed legislation to reopen most of the federal government, formally ending a partial shutdown that began over the weekend. The bill narrowly cleared the House after passing the Senate last week. Trump later said negotiations with Iran remain ongoing.
Macro data flow was busy across the region. Australia’s services PMI surged to a near four-year high in January, pointing to strong demand momentum and supporting the Australian dollar. Easing price pressures in the survey may temper near-term inflation concerns for policymakers.
Japan’s services PMI rose to an 11-month high, driven by stronger new orders, exports and hiring. Input cost inflation eased to its softest pace in nearly two years, though selling prices accelerated and business confidence softened. China’s services PMI also improved, rising to a three-month high as domestic and export demand strengthened. Employment expanded for the first time in six months, while cost pressures eased and output prices stabilised, although sentiment edged lower.
Separately, Stephen Miran resigned on Tuesday from his role as chair of the White House’s Council of Economic Advisers, a White House spokesperson said. Miran had been on leave from the CEA since being appointed last year to fill a vacancy on the Federal Reserve Board, where his term formally ended in January. He can stay at the Fed until the president nominates someone to his seat.
Asia-Pac stocks:
- Japan (Nikkei 225) -0.8%
- Hong Kong (Hang Seng) -0.4%
- Shanghai Composite 0%
- Australia (S&P/ASX 200) +0.7%
