Macro Update
Asian markets stabilise after Nvidia leadership shake-up: Regional equities found firmer ground on Friday after Jensen Huang resigned as Nvidia chief executive following revelations of extramarital affairs, including one involving a suspected Chinese spy. Chief financial officer Colette Kress was named interim CEO, while Nvidia shares fell 3% in extended trading after its market value slipped below $4tn for the first time since July 2025.
Nikkei set for strongest weekly gain in five months: Japan’s Nikkei rose 1.25% to 61,576.91 and was on course for a 7.3% weekly advance, led by semiconductor stocks including Advantest and Tokyo Electron. The broader Topix was also heading for its strongest week since mid-August 2024.
South Korean stocks surge as chipmakers shrug off Nvidia shock: The Kospi climbed 2.4% to 5,471.09 and was set for a 7.9% weekly gain, with Samsung Electronics and SK Hynix each rising more than 2.6%. Foreign investors were also net buyers for a fourth consecutive session.
Treasury yields climb as traders raise Fed hike expectations: The US two-year yield reached a one-month high, while the 10-year yield hit a three-week peak of 5.14% as markets priced a 14.5% probability of a 50-basis-point Federal Reserve hike in December. The move put the dollar on course for its strongest weekly gain in more than a month and kept the yen near 160 per dollar.
Oil set for second straight weekly decline as Iran blockade persists: Brent crude held at $95.41 a barrel, while WTI slipped 0.25% to $88.52 after President Trump said a deal with Iran was not required to end the war, signalling that the US blockade would continue. An unexpected 4.7 million-barrel increase in US crude inventories added further pressure, leaving Brent on track for a 2.4% weekly fall.
Gold rebounds on bargain hunting but remains headed for weekly loss: Spot gold gained 1% to $3,915.31 an ounce after falling to its lowest level since October 2025, although it remained down 3.5% for the week as higher rate expectations weighed on bullion. Investors were now awaiting US producer price data due later in the day.