News

Russian Human Rights Commissioner: The ceasefire remains in effect in the Russian-controlled Alexei humanitarian operation zone.

The yield on Japan's two-year government bonds fell 2.5 basis points to 1.880%.

The yield on Japan's 40-year government bonds fell 5.5 basis points to 3.985%.

According to Iranian media outlet Fars News, Brett Erickson, a senior director at a risk consultancy, stated that the United States pressured the UK's Office of Maritime Trade Operations (UKMTO) to conceal multiple incidents reported by Iran in the Strait of Hormuz. This US pressure extends beyond international organizations; ships are not immune. Reportedly, the captain of a third-party vessel witnessed another ship on fire and reported it. This suggests that under US pressure, ships that have been attacked and caught fire are even afraid to report being attacked.

According to Russian state television Vesti: The Ukrainian and Russian human rights commissioners met in the Russian-controlled town of Aleshki.

**Major Central Bank Policy Decisions** 1. Federal Reserve: Maintains interest rates at 3.75%–4.00%. The vote was 10-2, with Cook and Hamak supporting a 25 basis point rate hike. The Fed believes economic activity is strong, with consumption and capital investment resilient, but inflation remains high. The market continues to focus on whether there will be a rate hike in December. 2. European Central Bank: Maintains deposit rate at 2.50%. The ECB believes rising energy prices increase upside risks to inflation, but tighter financing conditions could simultaneously suppress economic growth and inflation. The market remains divided on whether there will be a rate hike in December. Furthermore, Lagarde announced she will step down early on February 7, 2027, bringing new uncertainty to the ECB's future leadership. 3. Bank of Japan: Maintains interest rate at 1.25%. The vote was 8-1, with Hajime Takada advocating for a rate hike to 1.50%. The Bank of Japan raised its inflation forecast and clarified that underlying inflation has reached a level broadly consistent with its 2% target, and it remains prepared to continue raising interest rates. The December meeting will be an important window for observation. 4. Bank of Canada: Raises interest rate by 25 basis points to 2.50%. This is the Bank of Canada's first rate hike in over three years. The central bank pointed out that persistently high oil prices have led to inflation remaining around 3%, and it expects inflation to average 3% in 2027, one percentage point higher than previously forecast. The central bank stated that further rate hikes may be necessary in the future, but it will act cautiously. 5. Reserve Bank of New Zealand: Maintains interest rate at 2.75%. The vote was 4-3, with three members supporting a 25 basis point increase to 3.00%. New Zealand's third-quarter inflation rate was 3.7%, and the Reserve Bank of New Zealand expects it to rise to 4.4% in the fourth quarter. The committee generally believes that monetary policy may need to be tightened in the future. Three key signals to watch in the market: 1. Global interest rate expectations are shifting back towards tightening: Canada has actually raised interest rates, New Zealand has seen a clear hawkish divide, and the Federal Reserve has two members supporting a rate hike. 2. Energy prices are a common variable: The United States, Canada, New Zealand, Europe, and Japan are all affected to varying degrees by rising energy costs. 3. The Japanese Yen and Japanese Bonds are worth close monitoring: The Bank of Japan has confirmed that underlying inflation has reached around 2%, and the market will continue to assess the possibility of a December rate hike.

Australia's S&P/ASX 200 index closed up 16.30 points, or 0.18%, at 8908.10 on Friday, October 30.

The formation of inflation in Japan can be divided into three stages: 1. Stage One: Yen Depreciation and Import Cost Push (2022-2024) The weakening yen pushed up the import costs of energy, food, and raw materials, which companies gradually passed on to consumers. Inflation in this stage mainly stemmed from external inputs. 2. Stage Two: Food Price Increases and Spread of Corporate Price Hikes (2024-2025) Prices of food, daily necessities, and services continued to rise, and corporate price increases gradually spread from some goods to more industries. Japan's domestic price adjustment mechanism began to change. 3. The Third Stage: Wage Increases and the Formation of Endogenous Inflation (2026 to Present) Labor shortages drive wage increases, and companies continue to raise prices to compensate for labor costs; wage increases, in turn, support consumption and companies' pricing power. The Bank of Japan believes that underlying inflation has reached around 2%. Four Main Factors Driving Japanese Inflation 1. Yen depreciation: Pushes up the cost of imported goods and energy, and remains a risk to inflation. 2. Crude oil prices: Push up fuel, transportation, and electricity costs; the situation in the Middle East continues to exert pressure. 3. Wage increases: Drive up service prices and business costs, becoming an important support for endogenous inflation. 4. AI Demand: This will drive up investment in semiconductors, electronic products, and related sectors, increasing price pressure in some industries.

The Russian Ministry of Defense stated that Russian forces attacked military and energy facilities in Kyiv and the Kyiv and Dnipropetrovsk regions of Ukraine, and also targeted port facilities and cargo ships in the Odessa region.

Hong Kong-listed Sunshine 100 China (02608.HK) announced that Han Bin has resigned as the company's chief financial officer, effective October 29, 2026.

The yield on Japan's 20-year government bonds fell 6.5 basis points to 3.605%.

Japan's construction orders fell 11.1% year-on-year in September, compared with a previous reading of -3.6%.

Japan's housing starts fell 2.74% year-on-year in September, below the expected 2.9% and the previous reading of 6.10%.

According to the Russian news agency RIA Novosti, the Russian Ministry of Defense stated that Russian forces struck military and energy facilities in Kyiv and its surrounding areas, including Dnipropetrovsk Oblast.

The yield on Japan's 20-year government bonds fell 6.5 basis points to 3.605%.

Market sources say Pentagon officials have asked some NATO allies to be careful with their language when discussing the Russian threat, avoiding overly strong statements. Officials in Lithuania, Latvia, and Estonia were among those who received the message.

The yield on Japan's 30-year government bonds fell 5.5 basis points to 3.840%.

According to TASS: The governor of Russia's Tula region said that 21 Ukrainian drones were destroyed overnight.

Japanese Finance Minister Satsuki Katayama: I will not comment on today's Bank of Japan decision.

Japanese Finance Minister Satsuki Katayama: The Bank of Japan is expected to communicate closely with the government to achieve its 2% inflation target.