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Shares of Zensho Holdings Co., operator of the Sukiya beef bowl chain, surged by 7.7% in Tokyo following the announcement of a price increase for about 60% of its menu items, effective November 22. This decision comes in response to rising Japanese rice prices and follows a previous price hike seven months ago due to increased material, labor, and energy costs.
Japan and China significantly reduced their holdings of US Treasuries in the third quarter, just before the presidential election. Japanese investors sold a record $61.9 billion, while Chinese funds offloaded $51.3 billion, marking the second-largest sale on record.
Asia-Pacific markets opened higher, buoyed by Wall Street gains and a Tesla rally, as investors await key speeches from Chinese financial officials at a summit in Hong Kong. The Reserve Bank of Australia is set to release minutes from its recent monetary policy meeting, where interest rates were held steady at 4.35%. Meanwhile, U.S. markets showed mixed results, with the Nasdaq rising 0.6% and the Dow Jones slipping 0.1%, amid concerns over the Federal Reserve"s rate cut trajectory.
The Nasdaq 100 index is testing a near-term wedge support at 20,354 after a 4% retracement, with Nvidia"s upcoming Q3 earnings expected to influence market direction. Meanwhile, gold prices are attempting to stabilize around the US$2,564 support level, while the USD/JPY pair shows signs of a potential higher low, maintaining an upward bias despite recent consolidation.
IG
EUR/USD, EUR/JPY, and USD/JPY are facing pressure following comments from BoJ"s Ueda, who anticipates increased wage-driven inflation as the economy improves, though he did not specify a timeline for adjustments. EUR/USD is hovering above its two-year support zone, with potential downside targets at $1.0449 and $1.0423. Meanwhile, USD/JPY is consolidating around ¥153.88 after approaching its late May high, with support levels noted at ¥153.19 and ¥151.82.
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SBI Digital Markets, UBS Asset Management, and Chainlink have successfully completed a pilot for automated fund administration using smart contracts, showcasing the potential of tokenized funds to enhance efficiency in the $132 trillion asset management industry. This initiative, part of Singapore's Project Guardian, demonstrates how existing fund processes can be adapted for blockchain technology, enabling real-time transparency and reduced operational costs. The solution is currently live on multiple blockchain testnets, with plans for mainnet deployment.
This week’s trading opportunity focuses on going long on gold, which has recently dropped 8% but is showing signs of a potential rebound. A stop loss is recommended below the late August low at $2,470, with an upside target set around $2,700 to $2,800.
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The US dollar has surged 6% since early October, reaching its highest value since 2022, driven by inflation concerns linked to potential punitive tariffs and tax cuts under Trump. However, this strength may be overstated, as the Fed is likely to maintain lower interest rates, and various economic factors could weaken the dollar moving forward. The current appreciation against the Swiss franc may not be sustainable, suggesting a cautious outlook for travelers planning to exchange currency.
Global stocks gained momentum ahead of Nvidia's earnings report, with the company's shares up nearly 200% this year, significantly influencing the S&P 500's record highs. In Japan, BOJ Governor Kazuo Ueda hinted at potential rate hikes but provided no clear timeline, as the yen weakened against the dollar. Meanwhile, U.S. Treasury yields remained elevated amid expectations of less aggressive Federal Reserve rate cuts, with the dollar reaching a one-year high.
K-pop agencies faced challenges in the third quarter, with three of the four largest companies reporting declines in financial performance due to reduced album sales and artist inactivity. However, JYP Entertainment saw a significant rebound thanks to Stray Kids' world tour. Analysts predict a recovery in 2025, driven by the return of major groups like BTS and Blackpink, alongside improved monetization of fandom platforms.
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