Asia-Pacific markets declined Friday, mirroring a downturn in US tech stocks and diminishing hopes for a Federal Reserve rate cut in December. Japan's Nikkei 225 dropped 1.57%, South Korea's Kospi plunged 4.09%, and Australia's S&P/ASX 200 fell 1.3%. Hong Kong's Hang Seng Index declined 1.88%, with major tech stocks like Baidu and Xiaomi also falling.

UK borrowing hit £17.4 billion in October, far above forecasts, while retail sales fell 1.1% and flash PMI data showed near-stagnant activity ahead of Chancellor Rachel Reeves' Autumn Budget. Economists warned the weak figures underscore a fragile economy and heighten risks that upcoming tax hikes could further depress consumer spending.

Japanese Finance Minister Satsuki Katayama has indicated possible government and Bank of Japan intervention to address the yen's sharp decline, which recently hit a 10-month low against the US dollar and an all-time low against the euro. The yen's depreciation follows the government's approval of a $112 billion economic package, raising concerns about fiscal health.

JPMorgan Chase, Bank of America, and Citigroup have reportedly shelved plans for a $20 billion bailout package for Argentina. Originally intended as a major private-sector debt facility to stabilize Argentina's finances, the plan was abandoned due to uncertainty over acceptable collateral and guarantees, as well as improved market sentiment following President Javier Milei's party's electoral victory. Banks are now considering a $5 billion short-term loan through a repo facility to help the government meet a $4 billion debt payment in January, sources say.

The Japanese government is finalizing a stimulus package worth 21.3 trillion yen, or $135 billion, which includes $110 billion from the general account and tax reductions, primarily through the elimination of a provisional gasoline tax rate. The package also includes subsidies for electricity and gas charges, providing households with about $45 from January to March 2023, as well as $13 billion to support municipalities amid rising food costs.

UBS has completed its 2025 share buyback program, repurchasing $3 billion worth of shares as planned, with $2 billion of the buyback occurring in the second half of the year. UBS will announce its 2026 repurchase plans in February.

European Union banks could face unfair competition under new trading book capital rules as the European Commission considers a multiplier to ease market risk requirements. The proposal has divided banks, with larger banks preferring a delay and smaller ones favoring immediate implementation with adjustments. "There is no way a blanket multiplier works, and the main reason is that you end up with winners and losers in the system," says Caroline Liesegang of the Association for Financial Markets in Europe.

The Financial Stability Board has urged Group of 20 members to closely monitor the rise of private credit markets and stablecoins, highlighting potential risks to financial stability. In a letter ahead of the G20 summit in South Africa, FSB Chair Andrew Bailey emphasized the need for global efforts to modernize financial regulations without compromising stability. Bailey also highlighted major economies' failure to implement global banking standards.

Reserve Bank of India Governor Sanjay Malhotra has expressed a cautious approach to cryptocurrencies and stablecoins, citing significant risks, while the RBI remains supportive of digital innovations such as the Unified Payments Interface and digital lending. Malhotra has reiterated a preference for the central bank digital currency over private digital assets, but has said the government must decide on crypto regulation.

Chinese investors have lost nearly $55 million in exchange-traded funds tracking Japanese stocks as diplomatic tension between China and Japan intensifies following Japanese Prime Minister Sanae Takaichi's comments on Taiwan. The five ETFs have dropped about 5% in the past two weeks as China has suspended seafood imports from Japan and issued a travel warning for Japanese citizens.

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