Headline: Markets Jolt: Aussie Dollar Climbs, ASX Slips; JPX Eyes Crypto Limits as Japan Inflation Cools
Introduction: Global markets swung on policy signals and macro headlines. A stronger Australian jobs print pushed the local currency higher and weighed on stocks, while Japan’s exchange operator flagged tighter oversight of corporate crypto holdings. In the U.S., hopes of a government funding deal buoyed sentiment even as commodities and energy earnings told a more nuanced story.
Australia and Japan set the tone in Asia. A robust employment report lifted the Australian dollar and knocked the ASX to a three-month low, dampening expectations for near-term Reserve Bank of Australia rate cuts. In Japan, wholesale inflation slowed to 2.7% year over year in October as import costs eased, keeping the Bank of Japan cautious about how firmly price gains are rooted in domestic demand.
Policy and market structure were also in focus. The Japan Exchange Group is weighing measures to discourage listed companies from amassing large cryptocurrency holdings on their balance sheets, with several firms pausing planned purchases after warnings that such strategies could complicate future fundraising. Meanwhile, U.S. risk appetite improved on anticipation that the government would reopen following a presidential address and planned bill signing. The Dow was reported at fresh highs, even as futures softened, and safe-haven demand lifted gold and silver. In energy, major oil producers posted lower but resilient profits, with trading units capturing volatility. Separately, production of the one-cent coin is ending as minting costs exceed face value, marking a milestone for cash usage and coin logistics.
Key Points: – Australian dollar strengthens on a strong jobs report; ASX drops to a three-month low as RBA rate cut hopes fade. – Japan’s producer prices eased to 2.7% in October, reinforcing a cautious stance from the Bank of Japan. – JPX considers curbs on listed firms’ large crypto holdings; multiple companies pause crypto purchase plans. – U.S. sentiment lifted by expectations of a government funding deal and a presidential address, with the Dow reported at new highs. – Gold and silver rallied amid shifting risk appetite; oil majors reported softer yet solid profits, aided by trading desks. – Minting of the penny ends as production costs surpass its face value, signaling a shift in cash handling dynamics.
