Headline: Markets Watch: BOJ Signals December Move, China’s Gold Rush, Crypto Rally on Shutdown Hopes
Key Takeaways
Global markets opened the week on shifting policy cues and risk sentiment. A possible December rate hike from the Bank of Japan pressured the yen, while China’s intensifying gold accumulation and upgraded growth outlook drew investor interest. In digital assets, Bitcoin and Ethereum rallied as hopes for a U.S. government funding deal lifted broader risk appetite, even as economists warned that a prolonged impasse could dent fourth-quarter growth.
In Japan, signals from the Bank of Japan pointing to a potential rate increase as early as December pushed the yen toward 153.80 per dollar. Traders are closely tracking wage data for confirmation that inflationary pressures are broadening enough to sustain policy normalization. Meanwhile, Prime Minister Sanae Takaichi indicated a future sales tax reduction is not off the table, but emphasized that near-term revenue needs leave little room for immediate cuts.
In China, demand for gold continued to accelerate. Gold-backed ETFs surged 164% in the first nine months of 2025, while the central bank extended its buying spree for an 11th consecutive month, lifting reserves to 2,303.5 tons. Domestic output rose 3.6% year over year, but consumption slipped nearly 8%, highlighting a preference for investment holdings over jewelry and retail demand. Separately, Goldman Sachs raised its China GDP forecasts to 4.8% in 2026 and 4.7% in 2027, citing resilient exports, easing tariff pressures following recent top-level talks, and policy support for technology and manufacturing in the new five-year plan.
Crypto markets advanced alongside improving risk sentiment. Bitcoin jumped about 4% to trade above $106,000, with Ethereum up roughly 7%, though Bitcoin remains around 15% below its peak. U.S. equity futures firmed as shutdown concerns eased, putting high-profile chip names like Nvidia back on traders’ watchlists. Still, analysts warned that if a shutdown drags on, U.S. Q4 GDP could slip into negative territory, with travel and tourism likely to bear the brunt.
Key Points: – Bank of Japan hints at a possible December rate hike; yen weakens toward 153.80 per dollar as traders watch wage data. – Japan’s prime minister keeps the door open to a future sales tax cut, but no near-term relief is expected due to fiscal needs. – China’s gold ETFs surged 164% year to date through September; central bank gold reserves rose to 2,303.5 tons after 11 straight months of purchases. – China’s gold output increased 3.6% year over year, while consumption fell nearly 8%. – Goldman Sachs lifted China GDP forecasts to 4.8% for 2026 and 4.7% for 2027 on stronger exports, easing tariffs, and industrial policy support. – Bitcoin climbed above $106,000 and Ethereum advanced 7% as U.S. shutdown deal hopes supported risk assets; prolonged gridlock still threatens Q4 GDP, especially in travel and tourism.
