Focal points include circuit breakers and financial stability amid the continued TECH rout

Asia Market Update: Focal points include circuit breakers and Financial Stability amid the continued TECH rout; US payrolls and CB speak including [Ueda and Williams] could also be pivotal; Energy traders remain watchful of Iran ahead of another weekend; Anthropic's IPO could face delay; NZ elections on Sat [Nov 7th].

General trends and developments

-Equity markets have remained volatile on today’s Asian session, especially for data center/AI and chip-related firms. Anthropic’s anticipated IPO is facing growing uncertainty amid the recent AI-led market selloff, with potential investors questioning whether the company can achieve its targeted ~$1.5T valuation [press]. The company had been aiming for a debut during the week of November 16th, with its roadshow potentially scheduled for next week. Investor skepticism had also intensified following Anthropic’s amended S-1 filing, which reported a 9M net value of -$23.3B (vs. -$12.1B prior), highlighting concerns around the scale of its spending (~$895B* vs. $820B prior) and the sustainability of its valuation.

-Japanese information technology (chip-related) companies declined sharply following the Nikkei 225 index opening -1.4%, further extending losses by -6.2% to 57,297. Advantest (6857.JP) shares declined -13%, Softbank (9984.JP) shares declined at it’s steepest since August 2024 -16%, and Kioxia (285A.JP) declined -14%. Amid the market concerns among Asian officials, Japan PM Takaichi stated that she wanted to use proceeds from BoJ's accelerated ETF sales as a source of funding for spending on areas critical to Japan's economic security.

-Incidentally, markets have stabilized, somewhat, from the sharp losses at the open as Taiwan and South Korean officials have pledged certain market support measures. These comments came after. Taiwan’s stock market and TWD currency came under significant pressure. [**Note: According to Article 4 of the Act, the Taiwan National Financial Stabilization Fund is capped at NT$500B ($15.14B), comprised of NT$200B ($6.05B) in borrowings from financial institutions collateralized by National Treasury-held stocks, and up to NT$300B ($9.08B) in borrowings drawn from uninvested capital across major public systems.)]

- Sentiment could be further impacted by the upcoming US nonfarm payrolls report and plethora of central bank speak expected, especially with the focus on financial stability. BOJ Gov Ueda is expected to address the IMF’s Central Banking lecture during the late NY morning [https://www.imf.org/en/news/seminars/conferences/2026/06/24/2026-michel-camdessus-central-banking-lecture]. Meanwhile, NY Fed President Williams is expected to comment at the ECB’s Conference on Money Markets 2026.

-Japanese pension fund GPIF (world’s largest pension fund) is expected to announce its quarterly [Q2] investment results later on Friday. The focal point is expected to be the firm’s domestic bond allocation. The fund was said to have not discussed portfolio allocation at its the Sept meeting. GPIF’s current policy portfolio targets 25% each in Japanese bonds, foreign bonds, Japanese stocks and foreign stocks. Multiple press reports throughout this year have suggested that Japan’s PM Takaichi may seek to use GPIF to support the domestic bond market if needed. At the end of Q1, GPIF had ~¥317.8T in assets with an 8.2% investment return rate.

Looking ahead (Asian-weighted focus, using EST/EDT time-zone)

-Mon Nov 2nd: Global EMEA Oct S&P/HCOB Mnfg PMI, Global AMER Oct S&P/ISM Mnfg PMI, (Mon night, KR Oct CPI, VN Oct CPI & Industrial Production & Retail Sales & Trade Balance & FDI - USD, AU RBA Interest Rate Decision + Statement, HK Q3 Preliminary GDP & Sept Retail Sales).

-Tue Nov 3rd: FR Sept Government Budget Balance, US Sept JOLTS, KR Oct FX Reserves - USD, (Tue night, NZ Q3 Unemployment Rate, Global APAC Oct S&P/RatingDog/HSBC Svcs PMI, JP Oct Monetary Domestic Base).

-Wed Nov 4th: Global EMEA Oct S&P/HCOB Svcs/Cmps PMI, EU Oct Preliminary CPI & Core CPI, US Oct ADP Nonfarm Employment Change, US Sept Trade Balance, CA Sept Trade Balance, Global AMER Oct S&P/ISM Svcs/Cmps PMI, BR BCB Interest Rate Decision, (Wed night, KR Sept Current Account, JP Sept 17-18th BoJ MPM Minutes, AU Sept Trade Balance, PH Oct CPI & Core CPI, TH Oct CPI & Core CPI, JP 10-Year JGB Auction, SG Q3 GDP & Sept Retail Sales, MY BNM Interest Rate Decision, TW Oct CPI & FX Reserves - USD).

-Thu Nov 5th: FR 10-Year OAT Auction, EU Sept PPI, UK BoE Interest Rate Decision + Statement, BR Sept Industrial Production, US Q3 Preliminary Nonfarm Productivity & Unit Labor Costs, MX BdeM Interest Rate Decision, (Thu night, PH Sept Industrial Production, ID Oct FX Reserves - USD).

-Fri Nov 6th: DE Sept Industrial Production, HK FX Reserves - USD, EU Sept Retail Sales, PH Oct FX Reserves - USD, US Oct Unemployment Rate, CA Oct Unemployment Rate, US Nov Preliminary Michigan Inflation Expectations, UR Oct FX Reserves - USD (Fri night, CN Oct FX Reserves - USD).

Holidays in Asia this week

-Mon Nov 2nd: Philippines.

-Tue Nov 3rd: Japan.

Headlines/Economic Data

Australia/New Zealand

-(AU) ASX 200 Index opens -1.4% at 8,937.

-(AU)Australia sells A$800M v A$800M indicated in 3.25% Jun 2039 bonds; Avg Yield: 5.1074% v 4.5113% prior ; bid-to-cover 2.56x v 3.26x prior.

China/Hong Kong

-(CN) Shanghai Composite Index opens -2.1% at 3,612; (HK) Hang Seng Index opens -1.6% at 24,405.

-Innolight [3308.HK]: Statement: Orders from major customers have largely filled entire year of 2027. To use policy tools, share buybacks, to safeguard investors' interests.

-*(CN) China Ministry of Industry and Information Technology (MIIT): to tighten network access rules for AI agent devices; The regulations apply to smart terminals equipped with AI agents; The oversight specifically applies to telecom terminals installed with AI agents, including smartphones and wearable devices; Regulators will conduct security assessments on telecom-fraud risks.

-(CN) China Vice Premier He Lifeng: Urges enhanced financial support for AI and computing [EU market close].

Japan

-(JP) Nikkei 225 FUTs in Singapore opened -3,975 points at 57,125.

-(JP) Nikkei 225 Index opens -1.4% at 60,226.

-(JP) Japan PM Takaichi: Aware AI, chip shares falling sharply, hard to tell whether this will be temporary or could persist; Want to use proceeds from BoJ's accelerated ETF sales as source of funding for spending on areas critical to Japan's economic security; Proceeds from BoJ's accelerated ETF sales can be used as proceeds to pay for bonds that will help government procure funds for public spending aimed at drawing in public investment.

-(JP) Japan PM Takaichi: Mulling paying support funds to over 30% of workers [**Note: The Japanese PM is making the comments after pressure from opposition lawmakers to clarify who will qualify for the new financial support program; According to the government's prelim estimates, the support payments were originally expected to cover ~20M people earnings between 1M and 3.5M yen annually. ]

-(JP) Japan Trade Min Akazawa: Reviewing details of Russia's Japan tobacco decree; US election won't immediately affect tariff deal - Tokyo, Japan.

-(JP) Japan Fin Min Katayama: Will show tax cut funding source during budget process; Will work closely with JT [Japan Tobacco], to take appropriate action.

-*(JP) JAPAN SEPT LABOR CASH EARNINGS Y/Y: 4.6% V 3.8%E [**Note: The data was driven by one-offs].

-(JP) Japan Bank of Japan (BoJ) to hold 25th bond market group meeting on December 7-8th.

-(JP) Japan sells ¥3.10T vs. ¥3.10T indicated in 3-Month Bills; Avg Yield: 1.2410% v 1.2706% prior; bid-to-cover: 4.34x v 3.88x prior.

-(JP) Japan releases weekly flows data [period ended Oct 30th]: Foreign buying of Japan equities: ¥1.13T v ¥1.18T prior; Japan buying of foreign bonds: +¥1.31T v -¥92.6B prior;; Foreign buying of Japan bonds [long-term debt securities]: ¥1.48T v ¥43.3B prior.

-(JP) Japan approves ¥10B reserve fund use for cybersecurity - US financial press.

-(JP) Japan PM Takaichi said to convey concerns on EU ev policy to France President Macron..

-Honda [7267.JP] Reports China Oct vehicle sales: 28.65K units, -52.2% y/y.

Korea

- (KR) Kospi Index opens -2.2% at 5,263.

-*(KR) Korea Exchange activates sidecar following Kospi 200 FUTs falling by -5%, program trading halted for five-minutes.

-*(KR) Kospi Index decreases -8.8%, falling below 60,000 for 1st time since May.

-(KR) South Korea to ease margin rule for 3 months. effective from Nov 9th [Mon]: To temporarily waive a rule requiring brokerage firms to maintain collateral worth at least 140% of their margin loans.

-(KR) South Korea Finance Minister: South Korea to monitor markets after US Midterm elections.

-(KR) South Korea President approval rating rises to 41% (vs. 39% prior) - Gallup.

Other Asia

-*(TW) Taiwan to unveil stock stabilization acts this afternoon - Paper.

-(TW) Taiwan's TAIEX Index declines -6.4% to 38,916 at the open:.

-(TH) Thailand Oct CPI M/M: 0.9% v 0.5%e; Y/Y: 3.9% v 3.3%e (fastest pace since January 2023).

-*(MY) MALAYSIA CENTRAL BANK (BNM) LEAVES OVERNIGHT POLICY RATE UNCHANGED AT 2.75%; AS EXPECTED [EU market close].

-(ID) Jakarta Composite Index opens -1.5% to 4,95620.

-(ID) Indonesia Oct Foreign Reserves: $146.8B v $146.3B prior.

North America

-Anthropic [ANT]: Reportedly Anthropic's IPO could face delay due to recent AI-led market selloff, potential investors say - US financial press.

-(US) Democratic Texas Governor Elect Gina Hinojosa: We need to stop what we are doing with data centers until we have measures to protect Texans; Don't hate data centers, hate how they are taking advantage of Texans; We can have 'strong' working relationship with Musk and his companies on 'our' terms. - CNN Interview.
-Nvidia [NVDA]: (US) House GOP Leaders ask Nvidia's CEO Huang to speak at briefing; Huang was asked to appear before the House on Nov 18th - NYT.

-(US) INITIAL JOBLESS CLAIMS: 189K V 196KE; CONTINUING CLAIMS: 1.72M V 1.71ME [US market close].

-(US) Q3 PRELIMINARY NONFARM PRODUCTIVITY: 3.6% V 2.7%E; UNIT LABOR COSTS: -0.7% V +0.4%E [US market close].

-(US) President Trump meets with National Security team today on Iran - Axios; Following the meeting, Trump said he will 'soon' decide whether to resume 'all-out-war' in Iran.

-(US) WEEKLY EIA NATURAL GAS INVENTORIES: +77 BCF VS. +80 BCF TO +82 BCF INDICATED RANGE [US market close].

-(US) Fed’s Barkin (non-voter): Demand is solid, economy is healthy; Inflation too high, not escalating but not diminishing; Rates now are somewhere around neutral [US market close].

-(MX) Mexico Oct Consumer Confidence: 45.0 v 45.3e [US market close].

-(BR) Brazil Oct Services PMI: 44.5 v 49.2 prior (2nd month of contraction) [US market close].

-(US) AAPL Files to sell senior unsecured notes due 2028, 2029, 2031, 2033 and 2036; Principal amounts and coupons undisclosed.

-(US) Thinking Machines Labs said to be nearing $5B in funding at a $40B valuation - Press.

-(US) Trump Admin said to propose easing regulation on space launches and reentry licensing - press.

-(US) Sec of State Rubio reportedly thought to be preparing for a presidential run in 2028 and will likely want to distance himself from Trump - The Independent [later denied].

-(US) President Trump to deliver remarks at 6:00pm ET in Florida on Friday.

Europe

-(UK) BANK OF ENGLAND (BOE) RAISES BANK RATE BY 25BPS TO 4.00%; AS EXPECTED [EU market close].

-(UK) BANK OF ENGLAND (BOE) NOV MINUTES: VOTED 8-1 ON POLICY (all members voted to hike rates; 8 voted for 25bps, Mann voted for 50bps) [EU market close].

-(UK) BANK OF ENGLAND: Raises 2026 CPI from 3.2% to 3.8%; Raises 2027 CPI from 2.1% to 4.0% [EU market close].

-(EU) ECB Chief Lagarde: The current situation is made hard by energy shock and AI pulling in the opposite direction; Energy costs are the main driver of the too high inflation.

-(CZ) CZECH CENTRAL BANK (CNB) RAISES 2-WEEK REPURCHASE RATE BY 25BPS TO 4.00%; AS EXPECTED [EU market close].

-(FR) France National Assembly rejects revenue half of 2027 budget with votes of 458 against and 0 in favor [EU market close].

Middle East

-(IL) Israel Oct Consumer Confidence: 104 v 85 prior [EU market close].

-(IR) Iran said to be reviewing 'concrete proposals' on nuclear program - NYT.

Levels as of 01:20am EDT

Nikkei 225 -5.9%; ASX 200 -0.5%; Hang Seng -1.0%; Shanghai Composite -1.0%; Kospi -6.2%.

Equity S&P500 Futures -0.1%; Nasdaq100 +0.7%; DAX -0.8%; FTSE100 -1.0%.

EUR 1.1235-1.1191; JPY 158.01-157.26; AUD 0.6943-0.6874; NZD 0.5599-0.5557.

Gold -1.0% at $4,051/oz; BTC -6.3% at $75,598; WTI Crude Oil +1.1% at $91.49/bbl; Copper +0.2% at $6.2250/lbs.