. >> we have got the open of the asx 200. at the start of the day, the focus is coming into the bond space in particular because you can see that retreat in yields being led by the longer end of the curve. it tracks the move in treasuries overnight. it is the softer labor market picture that tells us that the fed will need to start cutting rates next year to stem that economic slowdown that is also playing into energy prices. there is concerns about supply demand dynamics. energy stocks the oneness to watch in the aussie session. the broader index as well, fractionally in the red. a staggered start. nine minutes before the online for aussie trading. not a full picture yet. broadly when you look at futures, markets today in asia, we are looking a bit mixed but mostly tilted to the downside in the session. kiwi stocks online. nikkei futures in the chicago contract fairly flat. but continuing to track the session in china. the bad news is continuing to pile up. we had the moody's downgrade to china's sovereign debt. they followe

key takeaways, we have tech stocks leading the gains in the asx.ty small waiting on the whole benchmark we have the ai hype driving that, and we are likely to see that continue. then we have the energy underperformance associated with windowing oil prices on supply concerns. and some more local things, that crazy lithium frenzy, all the deals happening which has been little rocking -- shares up 1500%. and we have had a bit of divergence in the financials which is a heavily weighted sector in the asx. we have the insurers outperforming and banks have been underperforming. haidi: what is the outlook for next year? georgina: the outlook is it will be another grind. i think it will be all eyes on the global rate path and then obviously locally it is about what the rba will be doing and expectations are that going into the year they will be a bit of a hawkish stance until the middle of the year, and then all eyes on inflation, the consumer spending, those other things. then more sector-wise, uranium is certainly something to watch. investors have been p

we have got regional positivity on the asx, energy stocks leading the way.f that higher oil price we are seeing, $72.42 for wti. this is mainly due to increased militant activity we have seen in the red sea in connection with the ongoing war in gaza. as we take a look at u.s. treasuries, you mentioned some of that pushback coming from the fed. we have heard from austan goolsbee and lorraine mester telling the market, hang on a minute, don't get carried away by that dot plot. it certainly does not mean that easing is imminent. so the fed really pushing back on that speculation from the market that there are going to be if you rate cuts in 2024. we will just have to wait and see, but yields creeping up ever so slightly. our next guest says it is going to be a close call whether the boj will change its forward guidance after tuesday's meeting to lay the path towards policy normalization. so let's bring in cio at bnp paribas's wealth management asia. let's start with the bank of japan. you're not expecting anything to actually happen today apart from potentially

we currently have the asx looking a little flat. no surprise that we have a staggered open so we'll have a closer look at what is going on when we get moving. not a great bit of movement in the yields. quite a bit of dollar weakness at the moment against all the g10 basket of currencies over the exception of the yen. speaking of japan, let's look at how we are setting up for the open there at the top of the next hour. futures currently in positive territory. seeing the yen weakened right now. did not get a lot of guidance from the pdo say -- pboc yesterday. the market being left to make up its own mind. shery: which is why we have continued to see the japanese yen plunge. and we have seen the dollar fall but the yen was the only one of the g10 that were falling together with the greenback. take a look at how u.s. futures are opening because we are seeing downside pressure after we saw u.s. stocks gaining ground. the dow saw another record high. s&p 500 approaching its all-time high. every sector was in the green. we are really watch

we already have the asx 200 trading in positive territory.tor in the green and really at the highest level since august. you can see u.s. futures continuing to gain ground. after stocks and bonds jumped in new york. the s&p 500 top 4700, the highest level since january 2022. of course markets are reacting to the more dovish tone coming from the fed. the market opens in seoul and tokyo our next. ♪ hi, i'm jason. i've lost 228 pounds on golo. so when my doctor told me i needed weight loss surgery, i knew i had to make a change. golo's helped me transition to a healthier, sustainable lifestyle. i'm so surprised just how crazy my metabolism has fired up. i have a trust in golo 'cause i know it works. golo isn't like every other program out there, and i'm living proof of it. (announcer) change your life at golo.com. that's golo.com. shery: this is daybreak: asia. we are counting down to asia's major market opens after that risk rally we saw on wall street with the dow finishing at a record high, two-year yields plunging by the most since march. ma

we do have the company putting its statement into the asx 200.e also have the capital markets investment data later as well. we understand rio is gearing up its production facilities into the figure, looking at a $6.2 billion investment to build a huge mine in guinea. shipment forecasts also intact for the course of 2024. very interesting what we are hearing in terms of the demand from china, the rio ceo saying that the steel mills are running pretty much flat out and demand is fairly decent as well. . it could perhaps play into the story of the chinese recovery, given we are hearing so much bearishness, through. rio actually saying they have pretty decent demand. perhaps a bit more optimistic. haidi: and the juggle for policymakers, right, they don't want the market for "bloomberg studio 1.0 and iron ore to be too heated. the ceo of rio tinto will be joining us later, he will be with us to discuss his company outlook. his outlook when it comes to china perhaps a bit more optimistic than the broader macro outlook would suggest. coming up, russian

february, and entering that is not that common for the asx 200.haidi: i think it is an understatement to say it has been a bit of a busy week when it comes to central bank decisions. of course we kicked it off with the big one with the fed. it did not disappoint. the market was looking for the support for its narrative that the fed would pivot to a dovish stance and rate cuts would be priced in going into next year and that is exactly what it got. the acknowledgment from chair powell that that pivot is really on the cards despite a lot of caution around the fact the fight against inflation is not quite done yet. there is a lot of uncertainty as to whether, yes, we are at 4% which is better than 6%, but still far from 2%. can we stick the soft landing all the way? really interesting but we heard from the ecb and the boe overnight as well. shery: they pushed back on the narrative we might see imminent rate cuts. perhaps a given what we have heard from chair powell, they are sitting a little back, letting the fed do the job. first go ahead and make t

this is how it is shaping up for the asx 200 index ahead of that rate decision.he hour. thailand closed today. australia's central bank may put rate hikes back on hold this hour as data on inflation and home prices suggests its previous tightening is gaining traction. bloomberg australian economist james mcintyre joins us now. should we expect more of the same today? james: that is right. governor bullock was in hong kong last week at the central bankers forum and she noted that the rba was still concerned about the second-round effects of inflation still lingering around, coming through, and backing in the protective hikes they were talking about in november to ensure inflation remained on track to get to the bottom of their target band. we are likely to see more of that hawkishness today in terms of the statement and we notice the rba has low tolerance for inflation to linger longer than it already has. we do not think they will hike and we think that this is as the last meeting for the year as we roll into 2024, we will go in a different direction next year, b

the asx looking a bit overhead. 14-day rsi approaching overboard territory. from the october trough. take a look at the technicals, we might be nearly potentially -- nearing potentially a pushback. not a closed-door rally. marginal gains so far in the session. also watching the aussie dollar, 65.64. for privately hit that intraday low, as we had for a lot of triggers, disappointment when it came to the cpi print. we're are watching the budget update, that shows the government -- are in better shape than expected six month earlier, but the outlook remains challenging. joining us is our economics reporter, swati pandey. pretty significant improvement. what was driving that? swati: a large part of it is commodities prices that have been better than the government forecast. the government is always very conservative in its assumption of iron ore and oil prices. another reason is a very strong jobs market. we have the unemployment rate hovering around 3.6% and three .7% in the past year. so the tax receipts of the government have been pretty solid. these have been

the open for japan and korea with aussie stoxx 50 percent of the way into the session played on the asxbout 90% of stocks on it are in the green. a big jump. in the bond space, it's the retreat coming through in yields. you are seeing it in aussie and kiwi bonds to start today. again, it is the expectation that we are done with the fed tightening for now. haidi: yeah. really, a collective shrug is what we heard from jay powell. we have much more to come on daybreak: asia. we have bid moves for this monday morning. markets are coming online. this is bloomberg. ♪. ♪. is $14.63, please. $14 girl, what is you doing? but making smoothies is such a hassle. not with blendjet. what's going on? shhhh. hold that thought. just pour in some milk, throw in some frozen fruit, and in 20 seconds you've got yourself a nutritiou and delicious smoothie. mmm! tastes just like the ones they sell here. and for a whole lot less. i'm ruined. awww. kick your expensive smoothie bar habit to the curb. order yours now at blendjet.com. a few years ago, i came to saona, they told me there's no electricity on the isl

deus ex 200 -- the asx 200 is a little weaker. there are a couple stocks.re two big energy companies in australia. both companies have confirmed they are in early deal talks to create a major lng giant in austria. a story of is a major -- australia is a major lng exporter. we continue to track that. the talks may not result in a deal. haidi: of course, we are still processing the reaction when it comes to the japan third-quarter revised gdp numbers. contractions since the in -- onset of the pandemic. japan gdp revised lower than the biggest fall we have seen since the second quarter of 2022, the first full quarter of the pandemic. our chief rates correspondent for asia is garfield reynolds. we saw a picture of negative real wage growth as well. does it change boj expectations? garfield: i think it muddles it a little bit. on one hand, it might create concern within the bank of japan. they do want to be gradual in their shift towards, at some stage, normalizing policy. on the other hand, some of the internals, like the gdp came in stronger than expected. sig

take a look at how the rest of the markets are sitting up for the open pre-the asx 200 down .4%.by real estate, financials, and materials. consumer discretionary is it the only sector in the green. kiwi stocks also losing ground for a second consecutive session as nikkei futures at the moment are also pointing to the downside after we saw some gains in japanese stocks on the friday session. we are around a one-week high. the japanese yen at the moment holding steady. a little weakness against the u.s. dollar at a 42 level. the big story this week in japan will be the boj policy decision. no changes are expected on that front. we will be watching any commentary around any exit scenarios from the currently's monetary policy. u.s. futures really muted after u.s. stocks and bonds mixed on the friday session. that rally on the feds dovish pivot earlier in the week faded through the week. suffice to say the dow and nasdaq 100 are at record highs. paul: the bank of new york mellon ceo robert vince says banks need to be prepared for the unexpected. speaking with bloomberg he told us the

the asx 200 is also pointed to the upside, zero point 3% as we are seeing the aussie dollar holding steadylar. perhaps a lot to do with what we're seeing in the commodity space with iron four rising to attend month-high. it is a lot to do with currencies and the strength of the u.s. dollar against these asian currencies after they jumped on the payrolls data we saw last week as we head towards the fomc rate decision. not a lot of change is expected this week, but we are setting up for what happens next year. swap traders are expecting less easing because of a resilient labor market. haidi: and not a lot expected, but perhaps a lot expected when it comes to central banks, how they engage in how they communicate. the messaging. why are they not in a hurry to flag easing when we have seen the data points suggestion that they could? it's the same with the boe as well as the ecb. the bank of england is set to announce its next policy decision this week, policy markets still at odds on the outlook when it comes to rates. that comes two years since the hiking cycle began. also looking at the skew