Asia Market Quick Take – November 4, 2025

Key points:

• Macro: ISM Manufacturing PMI drops to 48.7 vs 49.5 expected
• Equities: Amazon up 4% on AI deal; Palantir falls post-earnings surge
• FX: USD up slightly amid weak PMI; USDJPY hovering near 154
• Commodities: Gold muted near $4,000; aluminium at highest since May 2022
• Fixed income: Treasuries weakened after Alphabet unveiled a $17.5bn eight-part bond sale.

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Disclaimer: Past performance does not indicate future performance.

Macro:

• The October ISM US Manufacturing PMI dropped to 48.7, below expectations, signaling eight months of contraction. Production, orders, inventories, and employment declined. Price pressures eased, but delivery slowed. Only two industries, Food, Beverage & Tobacco Products, and Transportation Equipment, expanded.
• In October, the S&P Global Canada Manufacturing PMI increased to 49.6 from 47.7, marking a slight contraction—the slowest since January. Output and new orders declined less, affected by tariffs and trade issues. Employment fell slightly, with job losses easing. Input cost inflation rose, but firms increased selling prices more easily. Confidence improved but remained below trend due to trade policy uncertainties.
• In October 2025, Switzerland's consumer prices increased 0.1% year-on-year, below the forecasted 0.3%, marking the lowest since June. Prices fell in clothing, footwear, household goods, and transport, while softening for recreation and culture. Alcoholic beverages and tobacco saw higher inflation. Core inflation decreased to 0.5%, with monthly prices dropping 0.3%.

Equities: 

• US - US stocks exhibited mixed performance on Monday, with the S&P 500 rising 0.2% and the Nasdaq up 0.4%, fueled by AI-related deals in megacap tech, while the Dow dropped 0.5%. Microsoft signed a $9.7 billion deal with IREN and plans $7.9 billion investments in UAE data centers. Amazon surged 4% on a reported $38 billion partnership with OpenAI focused on GPU usage. Materials and real estate sectors lagged, impacted by a disappointing ISM manufacturing index at 48.7. Kimberly-Clark plummeted 14.6% on a $48 billion offer for Kenvue, which jumped 12.3%. Palantir Technologies raised its annual revenue outlook to $4.4 billion, with Q3 sales up 63% to $1.18 billion. Despite surpassing estimates, shares dropped 3% in after-hours trading due to concerns about high valuations.
• EU - European stocks mostly rose, staying near last week's record highs as markets anticipate key earnings. The STOXX 50 gained 0.3% to 5,675, and the STOXX 600 edged slightly above flat. Autos led gains after China hinted at exemptions for Nexperia chip exports, boosting Mercedes Benz, Volkswagen, BMW, and Stellantis up 0.9%-2.3%. Rheinmetall surged 4% before its earnings report. In contrast, Ferrari dropped over 2% due to broker downgrades, Campari fell over 3% amid a tax probe, and BNP Paribas slipped 1.6% as it plans to raise Tier 1 capital.
• HK – HSI rose 1% to 26,158, reversing recent declines due to broad sector gains. The U.S.-China trade truce improved market sentiment, complemented by expected suspension of U.S. port fees. Hong Kong's Q3 economic growth of 3.8% and a 4.8% rise in September retail sales also supported the rally. Gains were limited by China's slowing factory activity post-Golden Week. Financials rose about 2%, led by AIA Group, ICBC, and BoC Hong Kong. Property sectors increased 1.4%, driven by Sun Hung Kai Properties and CK Asset Holdings.