International News 02 December 2025
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Australian Stocks Open December Weak as Consumer Staples Drag the Market
Australian shares traded in a narrow range on Monday, with the S&P/ASX 200 barely moving at 8,611.60 as weakness in consumer staples overshadowed modest gains in mining stocks. Treasury Wine Estates plunged 6.4% to its lowest level since 2015 after warning of a potential impairment in its U.S. assets, while major retailers Woolworths and Coles also slipped. Financials fell 0.4%, with ANZ down 0.6%, reflecting a sector rotation as investors shift from banks to undervalued miners amid concerns over slowing profit growth and the nearing end of Australia’s monetary easing cycle. Markets are now pricing in a 42.1% chance that the Reserve Bank of Australia will resume rate hikes in December 2026, with upcoming Q3 GDP data seen as a key driver of sentiment ahead of next week’s RBA meeting. Mining stocks provided some support, rising 0.6% on stable copper and gold prices—BHP gained 0.6%, Rio Tinto 0.3%, and Fortescue 0.2%. AUB Group plummeted 18.2% after a potential A$5.25 billion acquisition collapsed, while ASX Ltd dropped 1.7% following disruptions in its company-announcement platform. New Zealand’s S&P/NZX 50 also slipped 0.3% to 13,455.35.
China Reaffirms Strict Stance on Virtual Currencies, Warns of Rising Stablecoin Risks
China’s central bank (PBOC) has reiterated its hardline position on virtual currencies, warning of renewed speculative activity and pledging tougher action against illegal financial operations involving stablecoins. In a regulatory coordination meeting on November 28, PBOC emphasized that virtual currencies have no legal status equivalent to fiat money and cannot be used as lawful payment instruments. The bank labeled all virtual-currency-related business activities as “illegal financial activity,” highlighting concerns over stablecoins’ insufficient customer identification and weak anti–money laundering controls, which make them vulnerable to misuse in fraud, money laundering, and illicit cross-border transfers. PBOC stated it will intensify enforcement to maintain financial and economic stability, echoing Governor Pan Gongsheng’s earlier pledge to crack down on domestic crypto operations while closely monitoring global stablecoin developments. Although Hong Kong has created its own regulatory framework for stablecoins, no issuer has yet been licensed. Mainland China continues to uphold its 2021 ban on crypto trading, even as underground Bitcoin mining quietly resurfaces—driven by cheap electricity and rapid data-center growth in energy-rich regions, according to industry insights.
US Dollar Weakens Ahead of Key Fed Decision as Yen Strengthens on BOJ Signals
The US dollar weakened in early December as investors brace for a pivotal month marked by the final potential Fed rate cut of the year and growing expectations that dovish candidate Kevin Hassett may replace Jerome Powell as Fed Chair. Markets are stabilizing after last week’s CME Group outage disrupted global trading, but activity remains cautious ahead of major economic data releases. The dollar index slipped to 99.42, while expectations for a 25 bps Fed rate cut next week rose to 87%. Meanwhile, other major currencies posted mixed moves—euro slightly higher, pound steady, and commodity-linked currencies like the Australian and New Zealand dollars edging lower. In Asia, the yen strengthened to 155.84 per dollar as investors awaited a key speech from BOJ Governor Kazuo Ueda, which analysts believe could signal a rate hike this month. Japan’s capital expenditure data showed a 2.9% increase, boosting confidence in the economy’s resilience despite US tariffs. Japanese officials reiterated that recent yen volatility does not reflect economic fundamentals. Global markets now shift focus to upcoming US labor data and The Fed’s policy path into early 2026, with Bitcoin and Ether both declining sharply amid broader risk-off sentiment.