SWEDEN: "*SWEDEN APARTMENT PRICES ROSE 5.8% Y/Y IN OCT.: MAKLARSTATISTIK

Yesterday's positivity couldn't be sustained with falls across most major equity markets today.  Despite the positive lead in from Wall Street, profit takers took over, seeking to lock in yesterday's gains as Brent steadily moved higher due to escalating Saudi-Houthi tensions and an approaching storm in the Gulf of Mexico) and stubbornly elevated 10-year US Treasury yields were in focus.  

Profit takers too dragged the KOSPI lower as investors are moving cautiously into cash ahead of highly anticipated tech earnings later this month. Tech bellwethers led the decline, with SK Hynix sliding over -1.6% whilst Samsung held on to modest gains of +0.15% ahead of results tomorrow which is expected to see a chip operating profits up.

The NIKKEI is down -0.71% with most market commentators suggesting profit-taking was the primary driver following a powerful preceding rally. Sentiment was constrained by a weakening Japanese Yen and the broad regional anxiety over surging energy import bills triggered by the spike in global oil prices.

The Reserve Bank of India has raised rates in line with expectations and the NIFTY 50 is down -0.70%.  The Indian market snapped a consecutive two-day of gains ahead of the decision with the rise in oil prices not helping sentiment.  The RBI has left the door open for further rate rises, taking rate cuts off the table.  

Despite tracking Wall Street higher at the opening bell, Malaysia's KLCI index quickly dipped into the red due to foreign fund selling targeted at large-cap financial heavyweights like CIMB and Hong Leong Bank as JP Morgan downgraded CIMB's outlook. However, the broader market remained remarkably resilient, with smaller-cap gainers outpacing decliners and minor support pouring into local oil & gas counters via the rising energy sector

"*TAKAICHI: CONSUMPTION TAX CUT, HANDOUTS ARE BEST OPTION" - BBG

ACGBs (YM -0.5 & XM -0.5) are weaker on the day, consistent with a modest bear move across the cash curve.

• No major domestic data was released during today's session.
• Cash US tsys are 1-3bps cheaper, with a steepening bias, in today’s Asia-Pac session ahead of today’s release of the September FOMC Minutes.
• Cash ACGB yields rose slightly across the entire curve, with a modest bear steepening.
• The AU–US 10-year spread stands at +10bps, around the lowest since last 2025. The compression in the spread reflects global bond market pressure emanating from the US, with ACGBs partially following but outperforming the move.
• The bills strip pricing is little changed across contracts.
• OIS markets are pricing a gradual further tightening path, with approximately 1.2 additional 25 bp hikes implied by June 2027. The November 2026 meeting carries only a ~27% probability of a hike. The market's implied terminal rate sits near 4.90% by mid-2027.
• Tomorrow, the local calendar will see Consumer Inflation Expectation and Foreign Reserves data.
• The AOFM plans to sell A$1000mn of the 3.00% 21 November 2033 bond on Friday.

Bloomberg Finance LP