Italy S&P Global Composite PMI

Italy S&P Global Services PMI

France S&P Global Services PMI Final

France S&P Global Composite PMI Final

Asian equity markets mostly declined on Wednesday, with technology shares leading the losses as a strong Democratic performance in the US midterm elections fueled concerns over stricter artificial intelligence regulations and increased corporate oversight. Investors also grew wary that political gridlock in Washington could constrain government spending and weigh on US economic growth. These developments added further pressure to global equity markets, which were already facing a broad selloff amid rising doubts about the sustainability of massive investments in AI. Japan’s Nikkei 225 plunged more than 4%, while South Korea’s KOSPI declined by over 3%. Chinese equities also struggled to gain ground despite ongoing efforts by Beijing to support the market.

Asian Tech Stocks Drop on AI Concerns

The Swiss franc strengthened to 0.81 per USD, its highest level since early September, as initial US midterm results pointing to a Democratic takeover of both chambers of Congress weakened the dollar and boosted demand for safe-haven currencies. Adding to support, Swiss inflation climbed to a nearly three-year high of 1.5% in October, driven by higher imported energy costs. While inflation remains within the SNB’s 0%-2% target range, its acceleration has raised expectations of an earlier rate hike, with markets anticipating a move in early 2027. Meanwhile, increased safe-haven demand could encourage investors to unwind carry trades, supporting further franc gains. Previously, the wide interest rate differential with the US had weighed on the currency, as Switzerland's 0% borrowing costs made the franc an attractive funding currency for investments in higher-yielding assets.

Swiss Franc Hits 2-Month High

Malaysian palm oil futures remained under strain, trading around MYR 4,500 per tonne and touching an over one-month low. Sentiment weakened amid losses in Dalian and Chicago edible oil markets and concerns over ample supplies, with stocks hitting a record high in September and expected to top 3 million tonnes by year-end amid peak seasonal production. Competitive pressure also mounted after Indonesia cut its November CPO reference price by 6.07% to USD978.90 per tonne and lowered its export levy, making Malaysian palm oil less competitive. Meanwhile, easing crude oil prices amid hopes of progress in US-Iran peace talks reduced palm oil's appeal as a biodiesel feedstock. Caution also prevailed ahead of MPOB's monthly report on November 10. However, a weaker ringgit and robust demand offered some support, with October shipments jumping 45.4%–73.5% from September. In India, the largest buyer, palm oil imports stood at a 14-month high in October, boosted by festive demand ahead of Diwali.

Palm Oil Hovers Near MYR 4,500 as Bearish Factors Weigh

Japan’s 10-year government bond yield held steady around 2.77% on Wednesday, remaining close to three-month lows as investors favored safer assets amid continued weakness in technology and artificial intelligence stocks and growing political uncertainty in the US. Early midterm election polls suggested a possible Democratic takeover of both chambers of Congress, raising concerns over tighter AI regulations, increased corporate oversight and potentially reduced government spending. Meanwhile, market participants are awaiting Japan’s wage data due later this week for additional clues on the Bank of Japan’s monetary policy outlook. Last week, the BOJ maintained its benchmark interest rate at 1.25% but indicated that underlying inflation had reached its 2% target, potentially creating room for a rate hike as early as December.

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