Japan's new economy minister says weak yen has benefits to growth.Japan's new economic revitalisation minister, Minoru Kiuchi, said on Tuesday a weak yen may drive up import costs, but benefits the economy by boosting exporters' profits and capital expenditure.

USD/JPY below 152.50: Trump/Takaichi meeting ahead, economy minister verbal intervention.JPY is getting a bit of a tailwind from the meeting coming up between Trump and Japan PM Takaichi. Coming up today - Trump meets Japan's Takaichi to deepen defence, trade cooperation Takaichi has already begun ingratiating herself: Japan PM Takaichi making final arrangements to recommend Trump for Nobel Peace Prize.

UK shop prices fall for first time since March as food inflation cools.British retailers cut prices in October for the first time since March, led by the steepest fall in food costs in nearly five years, according to the British Retail Consortium (BRC).

Japan's Kiuchi: It's important for FX moves to reflect fundamentals, be stable.Japan's Kiuchi: It's important for FX moves to reflect fundamentals, be stable

United Kingdom BRC Shop Price Index (YoY) dipped from previous 1.4% to 1% in October.United Kingdom BRC Shop Price Index (YoY) dipped from previous 1.4% to 1% in October

US stock futures inched up on Tuesday after Wall Street rallied to new record highs in the previous session, as investors awaited Big Tech earnings, a Federal Reserve policy decision, and developments on a potential US-China trade deal. On Monday, the Dow rose 0.71%, while the S&P 500 and Nasdaq Composite advanced 1.23% and 1.86%, respectively. Gains came after the US and China agreed on a framework for a trade deal to be finalized by Presidents Trump and Xi this week, covering rare earth export controls, soybean purchases, and TikTok. Meanwhile, the Fed is widely expected to cut interest rates by 25 basis points on Wednesday, with markets watching for hints of another reduction in December. On the corporate side, Amazon said it will begin layoffs on Tuesday, marking the largest job cuts in the company’s history. Highly-anticipated earnings reports this week include Apple, Amazon, Alphabet, Meta and Microsoft.

US President Donald Trump will meet Japan's new Prime Minister (PM), Sanae Takaichi, in Tokyo on Tuesday for talks on trade and security, a week after the hardline conservative became Japan’s first female leader and vowed to accelerate a military buildup, as Reuters reported. Takaichi is expected to offer a package of US investments under a $550 billion deal agreed earlier this year, including cooperation in shipbuilding, sources familiar with the preparations told Reuters. She will also seek to bolster ties with Japan's key trade and security ally through purchases of pickup trucks, soybeans, and natural gas, the sources said. While Trump has previously said Tokyo is not spending enough to defend its islands against an increasingly assertive China, Takaichi is not expected to commit to new defense spending targets beyond the 2% of GDP pledged by her predecessors.

The EU is set to hold talks with a Chinese delegation in Brussels this week over Beijing’s new restrictions on rare-earth exports, as Europe moves to safeguard its industrial base. A European Commission spokesperson said Chinese officials will visit on Thursday, following a preparatory video call on Monday. Earlier this month, China’s commerce ministry tightened export controls on rare earth minerals, requiring government approval for certain materials and products made with specific technologies. European Commission President Ursula von der Leyen said the EU will accelerate efforts to secure alternative supplies and pursue mineral deals with partners such as Ukraine to reduce dependence on China.

U.S. President Donald Trump and Malaysian Prime Minister Anwar Ibrahim signed a trade and critical minerals agreement on Sunday aimed at deepening economic ties and countering China’s tightening control over rare earth supplies. The deal, signed in Kuala Lumpur, seeks to expand trade across agriculture, technology, and services as Malaysia modifies its tariffs and non-tariff barriers, said US Trade Representative Jamieson Greer. He added that the critical minerals pact would ensure trade and investment in rare earths remain “as free as possible and resilient as possible.” Anwar hailed the agreements as “a significant milestone” that would strengthen bilateral relations beyond trade cooperation.

China on Monday unveiled a plan to streamline the qualified foreign investor regime by easing access requirements, improving efficiency, and expanding investment options to attract more long-term foreign capital. The initiative includes a “green channel” and simplified procedures for allocation-focused investors such as sovereign wealth funds, international organizations, and pension or charitable funds. The China Securities Regulatory Commission (CSRC) said qualified investors will also be allowed to use exchange-traded fund (ETF) options for hedging and to trade in commodity futures and options. CSRC Chairman Wu Qing stated at a Beijing forum that the move is part of broader efforts to make China’s capital markets more “inclusive, adaptable, and competitive,” according to Xinhua Caijing. As global markets face risk repricing, Wu noted that stability and diversification are becoming key priorities, making the value of Chinese onshore and Hong Kong shares increasingly evident.

South Korea’s economy grew 1.2% quarter-on-quarter in the three months to September 2025, marking the fastest pace in 1-½-years on strong exports and solid private consumption. Household spending rose 1.3%, supported by higher outlays on goods such as motor vehicles and communication equipment, as well as services including dining and healthcare. Government consumption climbed 1.2%, driven by increased spending on goods and healthcare benefits. Construction investment slipped 0.1% due to weaker building activity, while facilities investment advanced 2.4% on robust demand for semiconductor equipment. Exports gained 1.5%, led by semiconductors and motor vehicles, and imports grew 1.3% on higher inflows of machinery, equipment, and vehicles. On an annual basis, South Korea’s economy expanded 1.7% in Q3, accelerating from a 0.6% growth in Q2.

USD/JPY posts modest losses below 153.00 despite trade optimism.USD/JPY posts modest losses below 153.00 despite trade optimism

South Korea Gross Domestic Product Growth (YoY) came in at 1.7%, above expectations (0.9%) in 3Q.South Korea Gross Domestic Product Growth (YoY) came in at 1.7%, above expectations (0.9%) in 3Q

The NZX 50 fell 48 points, or 0.3%, to 13,347 in early trading on Tuesday, halting gains from the previous three sessions, as weakness in healthcare, materials, and communication services stocks weighed on the index. Traders assessed a new 28% capital gains tax (CGT) announced this morning and awaited the Federal Reserve’s policy meeting later this week. Labour has agreed to campaign for the tax, which would apply only to property, take effect in July 2027, and not be retrospective if the party is elected at next year’s election. In response, Finance Minister Nicola Willis, who is also National’s deputy leader, told Morning Report that the policy would put the economy at risk. An upbeat session on Wall Street overnight, however, capped losses amid optimism over President Trump’s upcoming meeting with Chinese President Xi Jinping on Thursday. Among early decliners were Gentrack Group (-2.0%), Fisher & Paykel Healthcare (-1.9%), Port of Tauranga (-1.0%), and Freightways Group (-0.7%).

Coming up today - Trump meets Japan's Takaichi to deepen defence, trade cooperation.U.S. President Donald Trump will meet Japanese Prime Minister Sanae Takaichi in Tokyo on Tuesday, marking their first face-to-face talks since her election earlier this month.

Rabobank US Dollar to Yen Forecast: USD/JPY at 147 in Three Months.The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading near ¥152.86, down 0.14% on the day after touching resistance around 153.27 last week. Rabobank says the week ahead could be pivotal for the yen, with markets watching both the Bank of Japan's October 30 policy meeting and Prime Minister Takaichi's first in-person.

USD/JPY Hits Resistance, Implied Volatility Subdued Ahead of Fed, BOJ.USD/JPY remains pinned near key resistance as traders brace for this week's twin policy decisions from the Federal Reserve and Bank of Japan. Despite the event risk, implied volatility has barely budged, reflecting confidence that the Fed will deliver a 25bp cut while the BOJ maintains its dovish stance.

Beijing and Berlin play down diplomatic rift after German minister cancels China trip.China and Germany sought to cool talk of rising friction on Monday after German Foreign Minister Johann Wadephul abruptly postponed what would have been his first official visit to Beijing.

South Korea’s Composite Consumer Sentiment Index stood at 109.8 in October 2025, down slightly from 110.1 in September. Consumer sentiment regarding current living standards remained steady at 96, while expectations for the future outlook were unchanged at 100. Sentiment about future household income held at 102, and expectations for future household spending stayed at 110. Consumers’ views on current domestic economic conditions were unchanged at 91, while expectations for future domestic economic conditions fell three points to 94. Overall, the data suggest a modest softening in confidence mainly driven by a weaker outlook for the economy. Inflation expectations edged up slightly, with the one-year, three-year, and five-year anticipated rates all at 2.6%. Despite minor declines in some indicators, consumer sentiment continues to reflect broadly positive confidence in the economy.

South Korean October consumer sentiment index drops to 109.8 (prior 110.1).South Korean October consumer sentiment index drops to 109.8 September was 110.1 As part of the survey is an assessment of inflation expectations. 12 month media expectations jumpt o 2.6% in October prior 2.5% --- Bank of Korea (SK's central bank) data.

South Korea Consumer Sentiment Index: 109.8 (October) vs previous 110.1.South Korea Consumer Sentiment Index: 109.8 (October) vs previous 110.1

Natural Gas Price Forecast: $3.46 Resistance Caps Rally.Natural gas rebound from 20-day average, confirming strength with a close above $3.40, eyeing $3.59 breakout.

In New York, the Dow Jones Index went up by 337 points or 0.71 percent on Monday. Top gainers were Nvidia (2.79%), Apple (2.34%) and IBM (1.65%). Biggest losses came from Walmart (-1.60%), Nike (-0.87%) and P&G (-0.57%).

The Ibovespa rose 0.6% to close at a fresh record high of 146,969 on Monday as optimism from the Trump-Lula meeting at the ASEAN summit in Malaysia filtered through markets. Lula said Trump had “guaranteed” a bilateral trade agreement that would suspend current 50% tariffs on selected U.S. goods, and Treasury Secretary Scott Bessent reported a “very successful framework” for talks between Trump and Xi that further lifted global risk appetite. Markets parsed those developments as a concrete easing of tariff risk, with the prospective package including a delay to China’s rare earth export curbs, avoidance of the planned 100% tariffs and a restart of Chinese soybean purchases. Domestic banks led the advance, Banco do Brasil rose 1.7% and Banco Santander Brasil gained 1.1%, while cyclicals outperformed as Marfrig jumped 7%, Magazine Luiza added 5.6% and Companhia Siderúrgica Nacional climbed 3.7%.

The S&P/TSX Composite fell 0.3% to close at 30,276 on Monday as weakness among major miners outweighed gains in tech and financials. Top Chinese and US officials sketched a trade framework for Presidents Trump and Xi to decide later this week in South Korea, prompting a clear risk-on shift that drained safe-haven flows and pushed gold lower, which in turn knocked Agnico Eagle, Wheaton Precious Metals, Barrick and Franco-Nevada down between 2.1% and 5% and capped the index’s advance. Tech and financial names provided offsetting support with Celestica up 1.9% ahead of earnings and Shopify and Constellation Software rising 1.3% and 1.6% respectively while Brookfield gained 1.2% and energy names traded firmer. Canada’s backdrop remained complicated by President Trump’s Thursday decision to end trade talks with Ottawa over a tariff-related ad and his subsequent threat to tack on another 10% in Canadian tariffs, keeping Canada-specific trade risk elevated.

US stocks rallied to fresh highs after Treasury Secretary Scott Bessent said a "very successful framework" exists for Presidents Trump and Xi to discuss this week, with the S&P 500 up 1.3%, the Nasdaq up 1.9% and the Dow adding 350 points. The potential package included a delay to China’s rare-earth curbs, the likely avoidance of the planned 100% tariffs and a restart of Chinese soybean buying. Chip names led the session, Nvidia and Broadcom rose 2.1% and 2.4% and Qualcomm surged 9.5% after unveiling new AI processors aimed at data-center workloads, a product pivot that sent the stock to fresh highs as investors repriced its addressable market and near-term revenue potential. Tesla gained 4.2% and Apple added 1.3%, while investors also prepared for a heavy calendar this week with Q3 results from Alphabet, Amazon, Apple, Meta and Microsoft and a widely expected 25 bps Fed cut on Wednesday.

Economic calendar in Asia Tuesday, October 28, 2025 - South Korea data.KRW traders might like to take note of the data agenda, with the preliminary reading for Q3 GDP due. Otherwise it's a quiet calendar for the session ahead.

Canadian Dollar flows slow to a crawl ahead of central bank showdown.Canadian Dollar flows slow to a crawl ahead of central bank showdown

FX Today: Caution is set to prevail ahead of central bank meetings.FX Today: Caution is set to prevail ahead of central bank meetings

Crude oil futures settle at $61.31.Crude oil futures are settling at $61.31. That is down $0.19 or -0.31%.