• Asia firms into Tokyo lunch: Japan and Korea stocks rise, AUD and NZD gain after Nasdaq lead
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• South Korea Q3 GDP grows 1.0%, beating forecasts as AI chip boom lifts exports
• China September industrial profits jump 14.4% y/y, rebounding from 4.2% in August
• Japan services PPI picks up to 3.7% as August revised lower, backing BoJ hike path
• PBOC sets USD/ CNY central rate at 6.7171 (vs. estimate at 6.6731)
• Japan September services PPI holds at 3.7% y/y, in line with forecast, before BoJ
• Greer warns $3.4 billion EU loan to Airbus may breach US-EU aircraft trade truce Alt headlines:
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• ROADMAP: Morgan Stanley sees three catalysts ending the correction to ~7150, then S&P 500 to 8,000
• BoJ preview: MUFG sees hold but a 2% inflation call, with two dissenters the key yen risk
• ICYMI: Morgan Stanley sees 10%-15% more downside for Chinese offshore stocks before a bottom
• Goldman Sachs: AI buildout to add up to 50bp to US core PCE, but the boost is temporary
• NZIER Shadow Board majority backs 25bp RBNZ hike to 3% as oil and weaker kiwi bite
• Citadel Securities warns AI trade has little margin for error as three risks converge
• Carney says Canada has not budged as US trade deal looks less imminent than claimed
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Summary:

• Regional stocks mostly rose after a Nasdaq-led session on Wall Street, though China and Hong Kong lagged
• The KOSPI jumped 3.4% and the Korea Exchange triggered a sidecar after the sharp rise; the KOSDAQ gained 2.8%
• The Nikkei rose 1.7%, led by chip-related stocks
• The US dollar was slightly softer, AUD and NZD rallied, while USD/JPY moved higher as the yen weakened broadly
• Japan’s services PPI rose 3.7% y/y, up from a downwardly revised 3.5%; China’s industrial profits rebounded 14.4% y/y in September
• South Korea’s Q3 GDP grew 1.0% q/q, beating forecasts on AI chip-driven exports
• Oil edged lower despite continuing Saudi-Houthi exchanges, and gold traded sideways just above $4,000

Equities Asian equities were mostly firmer on Tuesday, picking up the positive lead from Wall Street, where a Nasdaq-led session improved sentiment. Mainland China and Hong Kong were the exceptions.

South Korea led the gains. The KOSPI climbed 3.4%, and its sharp rise prompted the Korea Exchange to trigger a sidecar, a temporary halt on program trading used to cool rapid moves. The KOSDAQ added 2.8%. Third-quarter GDP data showed the economy grew 1.0% from the previous quarter, well above the 0.7% forecast, as the global AI chip boom lifted exports and investment. The Bank of Korea estimates chips are driving about half of growth, although private consumption fell for the first time in nearly four years.

In Japan, the Nikkei 225 rose 1.7%, with chip-related stocks leading the advance. In China, the Shanghai Composite slipped 0.1%, while Hong Kong’s Hang Seng fell 0.4%.

Data Japan’s services producer price index rose 3.7% year on year in September, in line with forecasts and up from a downwardly revised 3.5% in August. The index is watched by the Bank of Japan for signs that firms are passing rising labour costs on to prices. The BoJ concludes its policy meeting on Friday and is expected to hold rates at 1.25% while signalling readiness for further hikes.

China’s industrial profits rose 14.4% year on year in September, rebounding from 4.2% growth in August. Year-to-date growth eased slightly to 15.5% from 15.7%.

Currencies The US dollar was slightly softer across much of the board. The Australian and New Zealand dollars both rallied, with Australia’s quarterly CPI data due on Wednesday. USD/JPY moved higher, bucking the broader dollar softness, as the yen weakened across the board.

Commodities Oil prices edged slightly lower despite continuing exchanges between Saudi Arabia and the Houthis, a reminder that Middle East supply risk remains in the background. Gold traded mostly sideways, holding just above $4,000 an ounce.

Canada

Hopes for a quick US-Canada trade agreement faded on Monday after Canadian Prime Minister Mark Carney said Ottawa has not changed its position in talks with Washington, and that any progress made so far reflects the US moving closer to Canada’s stance. The comments came as Semafor, citing sources, reported that a deal is likely not as imminent as US officials had suggested over the weekend.

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