investingLive Asia-Pacific FX news wrap: Amazon shares trashed

At a look:

Amazon shares slumped after earnings, as a heavy capex outlook overshadowed strong working efficiency and powerful AWS progress.
CME raised margin necessities for gold and silver futures following excessive volatility, triggering early Asia weak point earlier than a partial rebound.
RBA Governor Bullock defended this week’s price hike, flagging capability constraints and protracted inflation dangers.
BoJ board member Masu struck a cautious-hawkish tone, retaining additional tightening on the desk whereas warning about yen-driven inflation.
India’s RBI held charges at 5.25%, with the rupee little modified, whereas Japan’s election looms as a contemporary threat for yen and JGBs.

Amazon’s This fall 2026 earnings had been combined however strong, with a slight EPS miss offset by a transparent top-line beat. Working revenue of $24.98bn and an 11.7% margin had been successfully according to expectations, signalling continued price self-discipline. AWS was the standout, delivering $35.58bn in income and 24% ex-FX progress, properly above the 21% anticipated.

Nonetheless, the capex outlook dominated the response. Amazon flagged round $200bn of capex for 2026, far above the $146bn consensus, reigniting issues round money circulate and near-term returns. The preliminary response was brutal, with chatter that the inventory can be “slaughtered”, and Amazon shares had been down greater than 10% in after-hours commerce finally verify. US fairness index futures additionally slid on Globex, although they later recovered off the lows.

In commodities, the CME once more lifted margin necessities for key valuable metals contracts. Preliminary margin on COMEX 100 gold futures rises to 9% from 8%, whereas COMEX 5000 silver margins improve to 18% from 15%. The transfer follows violent latest value swings and compelled deleveraging throughout metals. Gold and silver fell in early Asia commerce earlier than stabilising.

In Australia, RBA Governor Bullock instructed parliament the board lifted the money price as a result of the economic system is extra capability constrained than beforehand judged, requiring tighter coverage. She stated demand progress should gradual except supply-side capability and productiveness enhance, including that the labour market stays sturdy, inflation remains to be elevated, and dangers are skewed towards inflation persistence. The Australian greenback traded in a slender vary, briefly dipping beneath 0.6910 earlier than edging again towards 0.6950, mirroring subdued strikes throughout main FX.

In Japan, BoJ board member Masu stated the central financial institution has exited extraordinary easing and can proceed to lift charges if the January outlook is realised, however cautiously, to keep away from disrupting the wage–value cycle. He described yen weak point as a double-edged sword, supporting income however including to imported inflation, and confused that extreme or disorderly foreign money strikes are undesirable.

Elsewhere, India’s RBI held the repo price at 5.25% in a unanimous vote, retaining a impartial stance amid low underlying inflation and regular progress. The rupee was little modified.

Lastly, Japan heads right into a nationwide election on Sunday, with polls pointing to a robust mandate for Prime Minister Sanae Takaichi. Whereas a decisive win might stabilise politics, markets stay centered on fiscal dangers, significantly her proposed meals gross sales tax suspension, with implications for JGBs and the yen firmly in view.

Asia-Pac
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