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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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Japanese Prime Minister Shigeru Ishiba urged companies to continue increasing wages in response to rising living costs and to support stable inflation and economic growth. Following discussions with labor union and business leaders, he emphasized the need for substantial wage increases in next year's negotiations, building on this year's record-high average wage deals.
The Swiss stock market faced losses, influenced by statements from Trump, with Roche declining after a research setback and Avolta plummeting. In China, export-oriented companies struggled, while the Shanghai stock exchange gained 0.4%. Meanwhile, Japan's Nikkei index fell 1.3%, heavily impacted by chip manufacturers and major car makers.
Japanese companies are increasing service prices at the fastest rate since 1992, passing on rising labor costs to customers. Producer prices for labor-intensive services rose 3.3% in October compared to the previous year, indicating a potential shift in the economic cycle as firms adjust to higher expenses.
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