Asia Market Quick Take – November 27, 2025

Key points:

• Macro: Trump advised Japan PM to soften tone on Taiwan
• Equities: Markets recover on Fed rate cut hopes; Oracle up 4.3% after DB reiterates Buy
• FX: GBPUSD rallied on UK budget borrowing restrain, builds £22 billion buffer
• Commodities: Gold and silver rally on broad based US dollar weakness
• Fixed income: Treasuries twist‑flattened as long end outperformed on long‑dated gilt rally

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US Pentagon reportedly said that Alibaba (BABA), Baidu and BYD should be on the list for China military ties, according to Bloomberg.
• Chinese regulators blocked ByteDance from using NVIDIA (NVDA) chips in new data centres, with the move part of Beijing’s strategy to force adoption of domestic chips, according to The Information.
• Trump advised Japanese PM Takaichi to soften her tone on Taiwan, which Japanese officials said were worrying because it shows Trump didnt want friction over Taiwan to derail the US-China trade truce.
• UK markets rallied as Chancellor of the Exchequer Rachel Reeves’s budget signalled more restrained borrowing and revealed a £22 billion buffer, leaving the government less vulnerable to bond‑market moves and reducing the need for another tax‑raising plan next year.
• US initial jobless claims fell 6,000 to 216,000 in the week ended Nov 22, the lowest since mid‑April, while continuing claims edged up to 1.96 million, suggesting employers are largely retaining staff despite economic uncertainty even as job‑cut announcements have picked up.

Equities: 

• US - Stocks extended gains for a fourth session Wednesday ahead of Thanksgiving, driven by expectations of a December Fed rate cut, now seen as 80% likely. The S&P 500 rose 0.8%, Nasdaq 0.9%, and Dow 0.8%. Large-cap tech led the rally: Oracle jumped 4% on a bullish call, Nvidia gained 1.4%, and Microsoft added 1.8%, while Alphabet slipped 1.1%. Deere tumbled 5.7% after issuing a weak outlook. US markets close Thursday for the holiday.
• EU - European stocks closed sharply higher Wednesday, tracking global gains on Fed rate-cut hopes and optimism over a potential Ukraine-Russia ceasefire. The STOXX tech sector led with ASML up 5.7% and Infineon up 3.6%, despite concerns Alphabet’s TPUs could pressure Nvidia’s datacenter outlook. Banks also advanced as Eurozone bonds rallied, with Santander, BBVA, Intesa Sanpaolo, and ING rising over 1.5%.
• HK - Hang Seng edged up 33 points (0.1%) to 25,928 Wednesday, marking a third straight gain as Fed rate-cut hopes lifted sentiment. Property and financials led advances, while mainland markets eased ahead of industrial profit data. Hong Kong exports stayed near a four-year high, and imports posted their strongest growth in five months. Alibaba beat revenue estimates on strong delivery and cloud demand; Miniso rose 2.2% after upbeat Q3 results, and Sunshine Lake Pharma jumped 5% on buyback plans. NIO fell 4% after soft Q4 guidance despite margin gains.

Earnings this week:

• Thursday - Bosideng International, Sime Darby, Luk Fook Holdings, Ryman Healthcare, Oberbank, Asseco Poland, Remy Cointreau, CPI Europe, Grenergy Renovables
• Friday - Meituan. Chagee, China Gas, China Water Affairs, CPI Property, Dottikon ES, 4iG, Kernel Holding, Electrica

FX:

• The dollar index fell for a second day, while sterling rallied on UK Budget borrowing restraint: GBPUSD rose 0.6% to 1.3239 (highest since 29 Oct) and EURGBP fell 0.3% to 0.8758, with options the least pound‑bearish since 11 Nov.
• EURUSD gained 0.2% to 1.1597 on flows betting a weaker dollar if Kevin Hassett becomes Fed chair, while the yen was the sole G10 laggard as USDJPY rose 0.3% to 156.44 amid focus on extra‑budget funding and potential new issuance.
• NZDUSD hovered around 0.5699 after a 1.3–1.4% jump (best day since 2 June) as the RBNZ cut rates but signalled no further reductions next year; the Aussie and kiwi held most of Wednesday’s gains into Thanksgiving, with AUD still capped by a descending trendline from the September peak.

Commodities:

• Oil dipped as investors tracked US‑led Ukraine peace efforts and this weekend’s OPEC+ meeting, with WTI near $58 after Wednesday’s 1%+ gain and Brent just above $63, as US envoy Steve Witkoff heads to Russia next week and traders weigh deal prospects and crude‑flow implications.
• Gold steadied around $4,165—up 0.1% to $4,165.82—after nearly a 1% gain as dovish Fed remarks reinforced expectations of a December cut (swaps ~80%) with jobless claims unlikely to derail it; silver was steady after Wednesday’s 3.7% jump, palladium rose and platinum was flat.

Fixed income:

• Treasuries twist‑flattened with the 10‑year near unchanged as the long end outperformed, buoyed by a sharp rally in long‑dated gilts after the UK DMO cut long‑end issuance and signalled a pause next quarter, and by a 7‑year auction that tailed the when‑issued by 0.6bp; the UK curve bull‑flattened post‑Budget/remit, with 30‑year gilt yields down 11.5bp, the biggest drop since April.

For a global look at markets – go to Inspiration.

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