China began its Golden Week holiday on Tuesday, with mainland markets shut through October 8. Hong Kong markets were also closed today.
The Australian dollar underperformed after a Bloomberg report said China’s state-run iron ore buyer, China Mineral Resources Group (CMRG), had told steelmakers to halt new dollar-denominated purchases from BHP. But Chinese commodity pricing firm Mysteel, cited by the Australian Financial Review, disputed the story, saying no such notice had been given and calling the rumour unfounded. NZD and CAD were also slightly weaker, while EUR, GBP, CHF and JPY saw little net change.
In Japan, the BoJ’s Tankan survey showed a modest improvement in sentiment among large manufacturers, suggesting the export-heavy economy is withstanding U.S. tariffs for now and keeping alive the prospect of another rate hike this month. At the same time, the final September manufacturing PMI confirmed factory activity contracted at the fastest pace in six months, with new orders and hiring both falling. That weaker read offsets some of the hawkish Tankan signal.
South Korea reported exports fell 6.1% y/y in September, the sharpest drop since February, after three straight months of gains. Officials pointed to front-loaded shipments as a factor, though the data could nudge the Bank of Korea toward resuming rate cuts when it meets on October 23. Separately, Seoul and Washington issued a joint statement pledging not to manipulate exchange rates for competitive advantage.
Commodities saw fresh strength, with gold touching another high.
From the U.S., Dallas Fed President Lorie Logan warned that inflation expectations “cannot be taken for granted” and said more labour market slack may be needed to return inflation to 2%. She noted non-housing services inflation could climb to 2.4% excluding tariff effects, while also highlighting resilient consumption and investment. Logan stressed caution over further cuts, but gave no signal on how far the Fed can ease before reaching neutral.
Asia-Pac
stocks:
- Japan
(Nikkei 225) +0.52% - Hong
Kong (Hang Seng) Closed - Shanghai
Composite Closed
for Golden Week holidays - Australia
(S&P/ASX 200) -0.34%