Mixed Market Sentiment Across Asia

Nikkei and Hang Seng Decline Amid Trade Concerns

South Korea’s Markets Perform Better, Boosted by Samsung

Global Market Recovery in the U.S.

Source: CNBC

The odds of Sanae Takaichi roiling Japan's markets with her hardline conservative agenda have just lengthened. Days after becoming the new leader of the ruling Liberal Democratic Party, her decision to shrug off concerns from the Komeito party over a campaign funding scandal proved the final straw for the junior partner, which announced its exit from the 26-year alliance on Friday. That makes it harder for Takaichi to secure lawmakers' backing to become the country's next prime minister and more difficult to govern if she succeeds. That'll leave investors anxiously guessing for months.

The yen strengthened about 1% against the dollar following this new challenge to her big fiscal spending plans, partly reversing the 4% decline after her party leadership victory on October 8. But the lack of a more forceful response shows investors are at sea in a new political day for Japan, which finds LDP dominance on the outs.

The party has rarely been so isolated in its seven decades of nearly uninterrupted power. The loss of Komeito support means it's trickier to win enough votes to become PM in the parliamentary ballot expected early next week, though analysts are sceptical the opposition can rally around a suitable challenger in time. If Takaichi squeaks out a win, post-war Japan’s first female leader would probably rank among its weakest. Simply passing a supplementary budget this year would probably require substantial compromise with rival parties.

Thomson ReutersPolitical tumult pulls the yen back from its weakest level this year

Worse, if the combative Takaichi ruffles feathers in the Japanese Diet, she could face a no-confidence vote. That would force her to call a snap election with potentially disastrous results for the rural-backed LDP, which now lacks vital support from the Komeito’s high-impact urban election apparatus.The Nikkei newspaper estimates that the LDP could lose 25 seats without Komeito support, with 20 of those probably going to the rival Constitutional Democratic Party. That would put the CDP on 168 seats in Japan’s more powerful 465-seat lower house, just ahead of the LDP on 166.

This raises serious questions for investors regarding Japan’s fiscal outlook. Despite support for some tax cuts, the CDP is also in favour of revising the Bank of Japan’s inflation target from 2% to one “exceeding zero”, ostensibly lowering the threshold for rate hikes. Yet potential partners like the Japan Innovation Party are fiscal doves, requiring compromise to form any lasting coalition.

Then there is the possibility the LDP fractures. The party has always been made up of diverse factions running the gamut on policies ranging from defence to immigration. If pacifist Komeito’s exit empowers the LDP’s right wing, perhaps even prompting calls to ally with the xenophobic upstart party Sanseito, moderates may well consider departing themselves. For investors, the only certainty in Japanese politics now is that the current limbo cannot last.

CONTEXT NEWS

Japan’s Komeito Party ended its 26-year partnership with the larger ruling Liberal Democratic Party on October 10, raising doubts about whether new LDP leader Sanae Takaichi can secure the parliamentary votes necessary to become prime minister. Komeito leader Tetsuo Saito said the partnership had broken down over the LDP leader’s refusal to sufficiently address a campaign funding scandal in her party which has dogged the ruling coalition for years.

The yen strengthened about 1% on the news as markets digested the implications for Takaichi’s plans for large-scale fiscal spending. The Japanese currency had fallen almost 4% against the dollar following her victory in the LDP’s leadership contest on October 6.

Source: TradingView

Binance has revealed a $283 million payout after massive liquidations and cascading losses rattled crypto markets, exposing deep volatility and testing investor confidence across exchanges.

Binance Concludes Market Volatility Review, Pays out $283M in User Compensation

Crypto exchange Binance announced on Oct. 12 that it had completed a full assessment of the extreme market volatility that shook the cryptocurrency sector between 20:50 and 22:00 UTC on Oct. 10, when both institutional and retail traders engaged in heavy sell-offs.The firm stated that the turbulence was driven primarily by global macroeconomic shocks, not internal system failures, and that its trading infrastructure remained fully functional throughout the event. The market experienced a sharp collective decline, sending asset prices plunging within minutes and triggering widespread liquidations across exchanges.

“Binance has conducted a comprehensive review and can now confirm that during the event, the core futures and spot matching engines and API trading remained operational,” the crypto exchange detailed, adding:According to data, the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions.The company said the review was part of its ongoing effort to ensure transparency and strengthen user trust amid speculation that Binance’s systems had contributed to the crash.

“At the same time, the review confirmed that following 2025-10-10 21:18 (UTC), some platform modules briefly experienced technical glitches, and certain assets had de-pegging issues due to sharp market fluctuations,” Binance continued. The affected tokens included Binance Earn products linked to USDE, BNSOL, and WBETH, which temporarily lost their peg values after the broader market downturn.

The exchange explained that these de-pegging events occurred after the sharpest market declines and therefore were not the cause of the sell-off. “We have completed compensation for users affected by the depegging issues within 24 hours after the event,” Binance noted. “Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses,” the company detailed, confirming:

Compensation has been distributed in two batches, totaling approximately 283 million USD.

The exchange also cited anomalies in certain spot pairs caused by long-standing limit orders and temporary user interface issues. Binance said it will enhance its system display accuracy and strengthen risk controls, while continuing to update the community on ongoing compensation reviews and platform improvements.

FAQ 🧭

Source: CoinGecko

Trump Declares Peace in the Middle East

Markets Rebound as Trade Fears Ease

Broadcom and OpenAI Form Strategic Partnership

European Stocks and Sectors Less Affected by U.S.-China Tensions

U.S. Intervention in Argentina to Stabilize Currency

Source: CNBC

While the latest tit-for-tat showdown between US President Donald Trump and Chinese leader Xi Jinping keeps global markets on edge, investors in India are set to welcome another large listing — the local unit of South Korea’s LG Electronics makes its Mumbai trading debut today. Shares of Jaguar Land Rover owner Tata Motors will also be in focus ahead of the record date Tuesday for the demerger of the firm’s commercial vehicles business.

Investors eye bumper gains in LG Electronics IPO

LG’s India unit could see its stock rally about 30%, based on the premium at which its shares are trading in unofficial markets, according to data from ipowatch.in. Such potential returns for an IPO worth over $1 billion would place it among major listings like Paytm and Eternal, both of which were investor favorites. A blockbuster debut by the multinational firm could add more fuel to October’s record-breaking listings run. Lenskart and Billionbrains Garage Ventures are also planning to join the frenzy, with plans to raise a combined $1.7 billion in first-time share sales later this month.

IPO rush puts equity markets to the test

On the flip side, some investors are cautioning against the potential negative impact the flood of IPOs can have on an already struggling stock market. Indian firms are expected to raise a record more than $5 billion this month, making the country one of the busiest markets for new share sales in the world. The worry is that a rotation of funds into IPOs will leave investors with less cash to buy existing shares, putting pressure on the broader market. Indian stocks are already trailing most Asian peers this year due to almost $17 billion of foreign outflows amid worries over slowing earnings growth, lofty valuations, and steep U.S. tariffs.

Will the low-beta EM please stand up?

But some analysts say India stands to benefit from the renewed Trump—Xi brinkmanship that has rekindled memories of past market turmoil and brought volatility roaring back to life. Morgan Stanley has argued all year that global volatility is good for Indian stocks, which have largely decoupled from the AI-driven global rally and maintain a relatively low beta versus peers.

If India’s low volatility does attract some global funds, it might help the market avoid an unwanted milestone. The MSCI’s India gauge is set for its worst year relative to its emerging-market gauge since 1995. For context, that’s three decades spanning the country’s IT boom, Narendra Modi’s political ascent, and Donald Trump’s two presidencies.

Source: Bloomberg Europe

Crypto Market Volatility Spikes After Record Liquidation

Hedging Activity Surges Amid Ongoing Trade Tensions

A Market Reset After Excessive Leverage

Short-Term Caution, Long-Term Uncertainty

Source: Reuters