investingLive Asia-Pacific market news: China beats, the euro wobbles and oil dips - investingLive

BOJ’s Ueda: We will continue to raise rates as underlying inflation approaches 2%US September import price index +1.1% vs +0.8% expectedUS September industrial production +0.7% vs +0.4% expectedUS fiscal 2026 budget deficit was the largest in five yearsMarkets:Gold down $2 to $4168US 10-year yields down 2 bps to 5.09%S&P 500 down 1.2%Nasdaq down 2.3%WTI crude oil up $3.40 to $101.37NZD leads, USD lagsS&P 500 futures were higher heading into the North American session but certainly didn't stay that way. Yesterday's rumors of an AI fund blowing up persisted and spread today. The neoclouds were hard hit again on all kinds of talk about how CoreWeave could use equity to meet debt obligations. They weren't the only ones as the financing problems are underscoring how difficult it will be to find all the capital for the promised AI build out. The SOX chip index fell for an eighth day. The oil market was more of a mystery as prices jumped higher in the US afternoon. The usual culprits are being pointed at, with the risks of a US escalation in Iran on the weekend. Even with that, the bond market was taking more of its cues from equities as yields ended the day lower.

US September PPI 6.3% vs 5.3% expectedUS October Philly Fed business index +20.9 vs +28.4 expectedUS October Empire Manufacturing index +25.50 vs +10.25 expectedUS retails sales for September 0.8% MoM vs 0.3% estimate. Prior month 1.3%Canada August manufacturing sales +1.5% vs +1.1% expectedUS initial jobless claim 199K vs 200K estimateUS August business inventories +0.4% vs +0.4% expectedUS weekly EIA crude oil inventories -8557K vs -288K expectedAtlanta Fed GDPNow holds at 3.6% for Q3 as consumer spending outlook improvesMarkets:WTI crude oil up $2.50 to $97.59US 10-year yields down 9.9 bps to 5.09%S&P 500 up 0.4%Gold up $61 to $4166CHF leads, USD lagsThe most-interesting development of the afternoon in US trading was that an AI focused fund that may have had $40 billion AUM blew up. The fund's latest holdings correspond strongly with some of the worst performers lately so the story fits, including top holdings Nebius, Bloom, Lumentum and CoreWeave. After that rumor began to do the rounds, there was some dip buying in stock markets that snowballed. The thinking may follow what happened with Situational Awareness where once it was clear what happened, the buyers returned.

Roaring exports lifted China’s economic growth in the third quarter of this year, with factory output growing much faster than consumer spending. China’s GDP grew by 4.5% year-on-year between July and September, the National Bureau of Statistics of China reported on Monday. The figures were better than economists had expected and up from the second quarter’s growth rate of 4.3%. China’s economy has now grown by 4.6% in the first nine months of the year, putting it on track to hit the government’s 2026 target of 4.5%-5% growth without extra stimulus measures. Industrial production rose 5.5% in September, up from 5.2% in August, while retail sales only increased 1.1%, up from 0.4%. Duncan Wrigley, the chief China economist at Pantheon Macroeconomics, said Beijing’s policymakers were likely to conclude that their efforts to stabilise headline growth in the third quarter were successful. “Headline industrial production rose in September partly as coalmines resumed operations after safety inspections prompted by a major accident.

Saudi national Abdulrahman Alfozan is accused of planting a recording device in an executive conference room at OpenAI headquarters in San Francisco.