In today’s briefing:
- Iron Ore Upside Persists, but Easing Fundamentals and Risk Reduction Cap Enthusiasm
- Foreigners Integrated Accounts Starting in January 2026: Impact on IBKR & Foreign Trading Platforms
- CX Daily: Chinese Carmakers Shift to ‘Asset-Light’ Models in Overseas Expansion
- Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 28 Nov 2025
- Japan: Cautious Reengagment
- BOK: Rate Cut Hopes Damped by Stickier Inflation
- Oil futures: Crude prices nudge up, benchmarks rangebound
- China & HK: Rebuild Slows Amid Heavy Sector and Stock Rotation
Iron Ore Upside Persists, but Easing Fundamentals and Risk Reduction Cap Enthusiasm
- Iron ore futures hit a three-week high as shipments fell by 8.3% WoW, but blast furnace shutdowns signal weak demand and limit further upside.
- Managed money participants reduced net long exposure across all futures and options expiries, reflecting a more cautious market stance.
- The DCE-SGX spread has retreated from the upper Bollinger band and slipped below the 9-day MA, indicating softening momentum.
Foreigners Integrated Accounts Starting in January 2026: Impact on IBKR & Foreign Trading Platforms
- On 27 November, the Korean Financial Services Commission (FSC) finally announced that it has completely abolished the restrictions on the foreigners opening integrated accounts to trade Korean stocks.
- This amendment will start to take effect on 2 January 2026.
- What this means is that major global trading platforms such as IBKR will most likely be allowed to trade Korean stocks without any major restrictions sometime starting 1H 2026.
CX Daily: Chinese Carmakers Shift to ‘Asset-Light’ Models in Overseas Expansion
- In Depth: Chinese Carmakers Shift to ‘Asset-Light’ Models in Overseas Expansion
- Yuan Rallies to One-Year High on Trade Optimism and Fed Cut Bets
- Ant Group Delays Hong Kong Brokerage Takeover as Beijing Approval Drags
Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 28 Nov 2025
United States recession indicators are turning increasingly negative, with construction, retail, and regional Federal Reserve surveys signalling broad economic weakness.
Bank of Korea held rates steady, while Asia shows mixed but occasionally strong export trends despite global trade frictions.
Regional Federal Reserve manufacturing and service activity reports posted sharp declines, reinforcing a deteriorating United States outlook.
Japan: Cautious Reengagment
- Japan is widely owned but lightly held: 88% of global funds now hold Japan—well ahead of Asian peers—yet average weights remain near 15-year lows and structurally underweight vs. ACWI.
- Allocations are shallow and skewed: 75% of global funds hold less than 6.3% in Japan; exposures above 10% are rare and concentrated in Value and Yield strategies.
- Tech & Industrials dominate; ownership is fragmented: Japan exposure is concentrated in Tech/Industrials, with few consensus stocks beyond Sony and Keyence, and a long tail of lightly held names.
BOK: Rate Cut Hopes Damped by Stickier Inflation
- The BOK maintained 2.5% rates as the consensus expected. Upward inflation revisions to 2.1% (2025) and 2.1% (2026) signal stronger price persistence than previously forecast, increasing rate-cut caution.
- Policy remains data-dependent with the “possibility” of cuts only after material disinflationary evidence emerges. Financial stability risks around housing and household debt levels now drive policy constraints more than growth concerns.
- Exchange rate depreciation and sticky service inflation create headwinds against achieving the 2% target, likely keeping rates elevated through early 2026 despite modest growth recovery expectations of 1.8%.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.
Oil futures: Crude prices nudge up, benchmarks rangebound
- Crude oil futures were moving sideways Thursday as markets entered into a holding pattern amid ongoing talks on the Russia-Ukraine peace deal.
- Front-month Jan26 ICE Brent futures were trading at $63.34/b (1930 GMT) versus Wednesday’s settle of $63.13/b, while Jan26 NYMEX WTI was at $59.10/b against a previous close of $58.65/b.
- Analysts said that while both Moscow and Kyiv have accepted versions of the US-brokered plan, there are still several key sticking points, particularly regarding Russia’s territorial demands.
China & HK: Rebuild Slows Amid Heavy Sector and Stock Rotation
- China exposure among GEM funds has rebounded to 26%, up from the 2024 low, but still far below the 37.5% peak. India has eased while Taiwan allocations hit new highs.
- China remains a major EM underweight at -3.09% vs. benchmark, despite rising allocations. High Active funds stay the most underweight
- Industrials see the strongest buying, while Utilities and Consumer sectors decline. Tencent and Alibaba dominate ownership, but many new names are entering the picture.
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