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Morgan Stanley projects India's GDP growth to improve to 6.7% in the December 2024 quarter, despite a current slowdown. While concerns arise over potential U.S. tariffs under President-elect Trump, the brokerage notes that India and Japan are less vulnerable to these risks due to structural advantages and effective policy measures. A 10% tariff increase could reduce India's growth by approximately 30 basis points.
Asian markets exhibit mixed performances amid cautious risk sentiment, influenced by Donald Trump's tariff threats. The Nikkei 225 is down 0.40%, while the ASX 200 rises 0.56%. In Australia, inflation data shows a CPI drop to 2.1%, complicating rate expectations for the central bank. The AUD/USD pair responds positively, defending an upward trendline support.
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Tokyo Gas Co., Japan's largest gas company, is under scrutiny regarding its extensive real estate portfolio, valued at approximately $9.7 billion by Elliott Investment Management. This portfolio reflects a common trend among Japanese utilities, which historically owned significant urban properties to maintain proximity to consumers, similar to peers like Osaka Gas and Kansai Electric Power.
Asian markets opened mixed as risk sentiments fluctuate, with the Nikkei down 0.40% and the ASX up 0.56%. Donald Trump's tariff threats are causing uncertainty, particularly affecting trade-dependent markets. The USD/JPY is trading near its 200-day moving average, with crucial support at 151.95, while the AUD/USD is attempting to maintain an upward trendline despite mixed inflation data from Australia.
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The US dollar steadied against major currencies as investors assessed President-elect Trump's tariff promises and awaited key inflation data. The New Zealand dollar rose following a 50 basis point rate cut by its central bank, while the Israeli shekel reached a three-month high amid a ceasefire agreement between Israel and Hezbollah. The dollar index dipped slightly, reflecting recent volatility influenced by political developments.
Shares of Seven & i Holdings Co. increased by 2.2% following reports that KKR & Co. is considering an investment in York Holdings, which encompasses supermarkets and restaurants that may be separated from Seven & i. Initial bidding for this unit is set to close on November 28, with Sumitomo Corp. also expressing interest, according to reports.
Sanrio Co., the owner of the Hello Kitty brand, experienced its largest share price drop since May 2014, plummeting up to 17% in early Tokyo trading. This decline followed the announcement that President Tomokuni Tsuji and MUFG Bank Ltd. would sell approximately 25.9 million shares, with pricing set for December 10. Trading volume exceeded 300% of the three-month average, indicating heightened market activity.
Masayoshi Son, the founder of SoftBank Group, is set to meet Indian Prime Minister Narendra Modi on Wednesday. Prior to this, he met Mukesh Ambani, chairman of Reliance Industries, to discuss potential artificial intelligence opportunities in India.
Crédit Agricole has been upgraded to category 2 on the Financial Stability Board's list of systemically important banks, requiring it to hold more capital to withstand financial shocks. The list, which includes 29 banks, saw Bank of America drop to category 2, while UBS was moved up to category 2 following its acquisition of Credit Suisse. The highest capital requirements are for JP Morgan Chase, classified in category 4.
AUD/USD has bounced off support, recovering from a November low of $0.6435 and targeting a high of $0.6549, with further resistance at $0.6571. Meanwhile, EUR/JPY remains above ¥159.91, aiming for the 55-day SMA at ¥162.31, while USD/JPY continues to range trade below ¥157.70, supported by last week's low at ¥153.29.
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