International News 05 December 2025
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Australia’s Economy Moderates in Q3 2025 as Growth Rotates Internally
Australia’s economy expanded by 0.4% in Q3 2025, according to the Australian Bureau of Statistics—slower than market expectations and down from 2.1% growth a year earlier. The data signals a rotation in growth drivers, with business investment and essential household spending providing key support. Capital expenditure remains resilient, boosted by machinery, equipment, and technology infrastructure such as data centers, offering tailwinds for industrial and tech-related sectors. However, external pressures weighed on overall momentum as net trade turned negative, with imports outpacing exports. Inventory drawdowns further dragged output, keeping export-oriented industries like mining and LNG vulnerable to weak global demand and commodity price volatility. Household saving rates increased, indicating consumers are cutting back on discretionary purchases—a trend that could pressure non-essential retail but favor essential goods and defensive sectors. Rising inflation has also shifted monetary expectations; according to Oxford Economics Australia, the Reserve Bank of Australia may delay rate cuts and could even raise rates at its upcoming meeting. Markets are now pricing in a full rate hike by late 2026.
https://internasional.kontan.co.id/news/ekonomi-australia-tumbuh-moderat-di-kuartal-ketiga
Japan’s Long-Term Bond Yields Hit Record High Ahead of Major Debt Auction
Japan’s 30-year government bond yield surged to an all-time high of 3.445% on Thursday (4/12/2025), reflecting market caution ahead of a ¥700 billion (US$4.51 billion) long-bond auction widely viewed as a key test of investor appetite. The jump comes as Prime Minister Sanae Takaichi rolls out an aggressive fiscal stimulus program heavily reliant on issuing new long-dated debt, increasing supply and pressuring bond prices. The benchmark 10-year yield also climbed to 1.905%, its highest level since 2007, while yields on 20-year and 5-year JGBs rose to 2.94% and 1.395%, respectively. Short-dated bonds were not spared, as investors sold off in anticipation of possible rate hikes by the Bank of Japan, with persistent domestic inflation signaling the gradual end of the country’s ultra-low-rate era. Market analysts, including Mizuho Securities’ Shoki Omori, expect demand in today’s long-bond auction to be “somewhat weak,” noting that relative valuations and short-term concessions are still not attractive enough to draw stronger buying interest.
Nikkei Rallies as Robotics Stocks Surge on AI-Driven Optimism
Japan’s Nikkei index extended its gains on Thursday (4/12/2025), rising 1.2% to 50,448.83 as investor enthusiasm shifted sharply toward robotics makers. The Topix index also climbed 1.2% to 3,374.23. Robotics giant Fanuc jumped 8%—and more than 13% for the week—after announcing an AI-powered industrial robotics partnership with U.S. chipmaker Nvidia. The sector-wide momentum lifted Yaskawa Electric by 9% and Nabtesco by 10.35%, making it the top gainer on the TSE. SoftBank Group also advanced 5.6%, while chip-testing firm Advantest slipped 2.23% amid sector rotation. According to IwaiCosmo Securities strategist Kazuaki Shimada, market focus is shifting from chipmakers to robotics as investors hunt for fresh themes. The rotation was evident across the board: banking stocks rebounded, with Mitsubishi UFJ and Sumitomo Mitsui Financial both up nearly 1%. However, Sumitomo Pharma and Furukawa Electric led the declines, dropping 3.38% and 2.8% respectively. Overall, market breadth was strong—about 75% of TSE’s 1,600+ mainboard stocks advanced, signaling broad-based optimism despite uneven sector performance.