International News 06 November 2025
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Asian Stocks Slide as Valuation Fears Trigger Global Sell-Off
Asian equities fell sharply on Wednesday (Nov 5, 2025), tracking a global risk-off sentiment after Wall Street’s steep losses amid growing concerns over stretched stock valuations. The MSCI Asia-Pacific ex-Japan Index dropped 0.8%, led by South Korea’s 4.1% plunge, while Japan’s Nikkei 225 slid 2.5% as SoftBank Group shares tumbled 10%. U.S. stock futures weakened further after the S&P 500 sank 1.2% overnight, pressured by remarks from top bank executives at JPMorgan, Goldman Sachs, and Morgan Stanley questioning the sustainability of record-high valuations. Analysts warned that the AI-driven rally could mirror the early-2000s dot-com bubble, with investors growing cautious ahead of Nvidia’s earnings report on Nov. 19. In broader markets, the U.S. dollar eased 0.2% against the yen to ¥153.41 following the Bank of Japan’s September meeting minutes, though the dollar index remained near a five-month high at 100.25. The 10-year U.S. Treasury yield dipped slightly to 4.07%, reflecting a mild flight to safety. In commodities, gold edged up 0.1% to US$3,936.48 per ounce after a three-day losing streak, while Brent crude oil was steady at US$64.44 per barrel. Meanwhile, Bitcoin briefly fell below US$100,000 for the first time since June before recovering marginally to US$100,499, highlighting the broader volatility across global markets.
Nintendo Profit Soars 85% as Switch 2 Sales Drive Record Growth
Nintendo’s net profit surged 85% year-on-year in the April–September 2025 period, boosted by the blockbuster success of its newly launched Switch 2 console. The Kyoto-based gaming giant reported a net profit of ¥198.9 billion (US$1.3 billion), up from ¥108.6 billion a year earlier, while revenue more than doubled to nearly ¥1.1 trillion (US$7.1 billion) from ¥523 billion in the same period last year. Strong hardware sales following the June debut of the Switch 2 were the main driver, with over 10 million units sold by the end of September. Popular new titles such as Mario Kart World and Donkey Kong Bananza also helped sustain momentum, even as income from content licensing slowed. Nintendo raised its full-year profit forecast to ¥350 billion (US$2.3 billion) from ¥300 billion, and increased its Switch 2 sales target to 19 million units, up from 15 million. Analysts expect performance to remain robust heading into the holiday season — typically the company’s strongest period — supported by upcoming releases from major franchises like Pokémon and Kirby. Despite a decline in sales of the older Switch model, Nintendo’s hybrid console ecosystem continues to thrive, underscoring its dominance in the global gaming market.
Wall Street Titans Warn of Market Correction Amid AI-Fueled Euphoria
Two of Wall Street’s most influential executives — David Solomon of Goldman Sachs and Ted Pick of Morgan Stanley — have warned that global equity markets could soon face a 10–15% correction following an extended rally that pushed valuations to extreme levels. Speaking at the Global Financial Leaders’ Investment Summit in Hong Kong on Tuesday (Nov 4, 2025), Pick said such a pullback would be “healthy” for markets that have grown overly optimistic. Solomon echoed this caution, noting that markets appear “too calm” despite persistent risks such as elevated inflation, high interest rates, and ongoing U.S. political gridlock amid a partial government shutdown now in its fifth week. Both CEOs compared current market sentiment to the late-1990s dot-com bubble, where euphoria masked underlying fragility. U.S. futures reflected the shift in sentiment, with Dow Jones E-minis down 0.75%, S&P 500 E-minis falling 1.09%, and Nasdaq 100 E-minis slipping 1.37%, while the VIX fear index rose to a two-week high. Tech valuations, Solomon said, look “full,” suggesting a natural cooling phase may be imminent. Their warnings align with earlier remarks from JPMorgan’s Jamie Dimon, who predicted a major correction within two years due to geopolitical tensions and fiscal imbalances. Meanwhile, the ongoing AI investment boom, which Citigroup estimates could reach US$2.8 trillion by 2029, continues to fuel debate. While some liken it to the dot-com era, others argue it’s different this time — with leaders like Nvidia and Microsoft boasting real profits and business fundamentals. Nvidia recently became the world’s first company to surpass a US$5 trillion market capitalization, underscoring both the strength and the speculative edge of the current cycle.