Market Battle in Asia: Important Impulses for Investors

Thursday promises to be an eventful day for the markets in Asia as investors brace for a flood of important economic and corporate news. The focus will be on the monetary policy decision of the Bank of Japan, as well as China's official purchasing managers' indexes for October. Besides these highlights, investors are anticipating the release of third quarter GDP figures from Taiwan and Hong Kong, retail sales data from Japan and Australia, and the latest quarterly results from major regional corporations such as Samsung, Panasonic, and Sumitomo. Meanwhile, U.S. bond yields stalled on Wednesday, maintaining a level not seen since early July. The dollar slightly declined but still recorded its largest monthly increase in October in over two years. U.S. stocks did not provide clear guidance on Wednesday, so investors in Asia may look for cues from the quarterly reports of Microsoft and Facebook parent Meta Platforms. The focus now shifts back to Asia, particularly the press conference of BOJ Governor Kazuo Ueda following the expected decision to keep interest rates unchanged. The weakening yen and a Nikkei 225 index that has risen above 39,000 points are shaping the current market situation in Japan. In China, investors are awaiting the release of the 'official' PMIs for October. A positive surprise might be more noticeable since it is still too early to see direct impacts from Beijing's extensive stimulus measures. The MSCI Asia/Pacific ex-Japan stock index is facing its worst month since January. Key announcements that could influence the markets on Thursday: - Decision on Japanese interest rates - China: 'Official' purchasing managers' indexes for the manufacturing and services sectors - Taiwan GDP (Q3)