Main PageOctober 21, 2026

investingLive Asia-Pacific market news: RBA’s Hauser puts November hike in play

Summary:

  • RBA Deputy Governor Andrew Hauser said the inflation outlook looks worse than forecast, the quarterly trimmed mean is likely to exceed expectations and capacity pressures are more elevated than assumed
  • Goldman Sachs now expects the RBA to raise the cash rate by 25 basis points to 4.85% on 3 November, having previously forecast no change
  • The Australian dollar rose on Hauser’s remarks but gave back the gains to be little changed on the session
  • NEXTDC shares plunged 44% after the data centre operator cut FY27 guidance on grid power delays
  • A Reuters poll found most economists expect the BOJ to raise rates to 1.50% in December; Japan’s September exports rose 16.7%, below forecast
  • South Korea’s KOSPI jumped more than 5%, triggering a buy-side sidecar; the Nikkei 225 rose 1.1%, the Shanghai Composite fell 0.4% and the Hang Seng slipped 0.3%
  • China’s youth unemployment rate eased to 18% in September from 18.9%
  • The FAA certified Boeing’s 737 MAX 10; SpaceX and Netflix reported results and Super Micro issued a surprise upgrade

Australia: Hauser signals fifth hike risk

Reserve Bank of Australia Deputy Governor Andrew Hauser delivered the most significant news of the Asian session, signalling that a fifth rate rise this year is a live option at the Board’s next meeting on 3 November.

Speaking at a fireside chat at Citi’s Australia and New Zealand Investment Conference in Sydney, Hauser said the inflation outlook looks worse than the RBA had forecast and that the quarterly trimmed mean, the bank’s preferred measure of underlying inflation, appears set to come in higher than expected. He said capacity pressures in the economy are more elevated than anticipated and that firms are reporting cost pressures as their number one problem.

Hauser stressed that inflation has been high for a very long time and that the RBA cannot allow inflation expectations to drift away from target. He said the bank has to respond to supply shocks to keep expectations anchored, and that while policy cannot target current inflation, that does not mean current inflation is unimportant.

He acknowledged some offsets. September’s labour report was a little weaker than expected, and while unemployment remains quite low, the labour market is easing. Housing data has also slowed, and he said monetary policy is working. Hauser added that forecasts are still being finalised and he does not know for sure what the Board will decide.

Goldman Sachs subsequently changed its call and now expects the RBA to raise the cash rate by 25 basis points to 4.85% in November, having previously forecast a hold. The cash rate stands at 4.60% after the 29 September hike, the fourth of 2026. September-quarter CPI data is due on 28 October, and the decision follows at 2.30pm Sydney time on 3 November (03:30 GMT, 22:30 ET on 2 November).

The Australian dollar rose on Hauser’s remarks but failed to follow through and was little changed on the session.

In equities, NEXTDC shares plunged 44% after the data centre operator cut its FY27 underlying EBITDA guidance to A$245 million to A$265 million, from A$385 million to A$410 million. Grid works for its Melbourne M3 site were suspended after community opposition, pushing additional power supply into FY28. The company froze new development projects.

Japan: December BOJ hike expected

A Reuters poll showed 69% of economists expect the Bank of Japan to raise its policy rate to 1.50% this quarter, with about 80% of those naming a month choosing December rather than the meeting ending 30 October. Most respondents warned that further dissent from government-nominated board members could weigh on the yen.

Finance Minister Satsuki Katayama said Japan is on the cusp of sustained, wage-driven inflation and that she sees no gap between the government and the BOJ, after a lawmaker asked whether planned tax cuts could clash with rate hikes.

September exports rose 16.7% year on year, a 13th straight gain driven by AI and chip demand but below the 20.1% forecast. Imports rose 18.9% as delayed crude deliveries trimmed the energy bill, narrowing the trade deficit to ¥536.6 billion, wider than the ¥181 billion expected.

China and South Korea

China’s urban youth unemployment rate, covering 16 to 24-year-olds excluding students, eased to 18% in September from 18.9% in August, which had been the highest reading in 12 months, National Bureau of Statistics data showed.

South Korea’s KOSPI surged more than 5%, with KOSPI 200 futures up 5% triggering a buy-side sidecar that suspended programme trading for five minutes. It was the first such trigger in two months, driven by strong foreign net buying.

Markets

Asian equities were mixed. Japan’s Nikkei 225 rose 1.1%, while the Shanghai Composite fell 0.4% and Hong Kong’s Hang Seng slipped 0.3%. Oil prices firmed slightly and gold was largely flat.

Corporate: earnings, Boeing and AI

The US Federal Aviation Administration granted final certification to Boeing’s 737 MAX 10, clearing the largest version of its best-selling jet for delivery after nearly seven years of delays and unlocking close to 1,500 orders.

SpaceX reported third-quarter revenue of about $14.6 billion, well above forecasts, with its AI segment contributing more than half. On the earnings call, chief executive Elon Musk said a merger with Tesla would be a good idea but is far from certain, and that AI compute demand is likely to stay strong.

Netflix beat on third-quarter profit but guided fourth-quarter earnings below expectations and lowered its full-year free cash flow forecast to about $12 billion.

Super Micro Computer released a surprise preliminary update lifting September-quarter revenue to $18.5 billion to $19.5 billion, far above prior guidance, sending its shares up 14% after hours.

Separately, Nvidia is in talks to invest in Australian AI cloud provider Firmus Grid after it scrapped its IPO, The Information reported, and Citadel founder Ken Griffin said AI is almost certainly in a bubble. Meta Platforms reports after the US close on Wednesday, opening mega-cap tech earnings. 

This article was written by Eamonn Sheridan at investinglive.com.