investingLive Asia-Pacific FX news wrap: Japan approved a ¥21.3 trillion stimulus package | investingLive

Major FX traded in subdued, narrow ranges. Even the yen — the market’s focal point thanks to a wave of data, policy hints and fresh fiscal headlines — barely budged, with USD/JPY holding around 157.46, until a final dip.

Japan’s November flash PMIs were mixed:

Manufacturing remained in contraction for a fifth month at 48.8, an improvement from 48.2.
Services held firm at 53.1, marking continued resilience.
The composite PMI rose to 52.0, its eighth month in expansion.

Inflation firmed modestly, staying well above the 2% target on all three measures:

All readings aligned with expectations and support the case for near-term BOJ tightening.

Exports were a bright spot. Shipments rose 3.6% y/y, beating the 1.1% consensus and marking a second month of gains, helped by resilient demand in Asia and a softer yen. Exports to the U.S. fell 3%, the seventh straight monthly decline, though the tariff impact appears more limited than feared.

Governor Ueda emphasised that currency volatility is increasingly feeding into import prices and inflation expectations. He said the BOJ will scrutinise FX pass-through closely and reiterated that the bank’s baseline remains further rate hikes if the economy and inflation track forecasts. Ueda
noted that the likelihood of those projections materialising is
increasing, reinforcing expectations of further, gradual policy
normalisation.

The yen finally gained a little more on headlines that the cabinet approved a ¥21.3 trillion stimulus package, Japan’s largest since the pandemic, with ¥17.7 trillion in fresh spending. Investors remain wary of the heavy funding requirements.

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EU Trade Commissioner Maros Šefčovič said Brussels is exploring equity stakes, long-term offtake agreements, and joint investments in Australian resources projects as part of renewed trade-deal momentum.

He expects another round of Australia–EU FTA talks early next year, with critical minerals emerging as a central pillar. Australian equities underperformed, falling to a five-month low.

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Singapore’s economy beat expectations in Q3, prompting the government to lift its 2025 GDP forecast to ~4.0% (from 1.5–2.5%). Stronger global demand and resilient regional growth drove the upgrade.

The Monetary Authority of Singapore (the country’s central bank) said its policy stance remains appropriate with the output gap positive this year and normalising in 2026.

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Chicago Fed President Austan Goolsbee warned against front-loading rate cuts, saying inflation has been “steady at best, and worse by some measures.” He remains uneasy about adding a third consecutive cut in December and stressed the Fed needs more clarity before easing further.

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Crypto fell again. Bitcoin whale Owen Gunden, the world’s eighth-largest individual BTC holder, fully liquidated his 11,000-BTC stack (~$1.3bn) over the past month, delivering a psychological blow to sentiment.

Oil remained heavy amid broader risk caution.

Asia-Pac
stocks: