Asia-Pacific stocks traded mixed overnight, with Chinese Manufacturing PMI data disappointing amid a sharp decline in export orders. However, Federal Reserve Bank of St. Louis President James Waller reiterated his call for a rate cut in December, citing ongoing data fog that does not warrant stopping the monetary policy easing cycle.

In the futures market, European equity futures pointed to a mildly positive cash market open, with the Euro Stoxx 50 future up 0.2%. Crude oil prices gained at the open as participants digested the latest OPEC+ decision to raise output again by a modest 137k bpd in December before pausing for Q1 2026.

In the FX market, the DXY dollar index was steady, while the USD/JPY sat above 154 despite Japan’s absence from the market. The EUR/USD remained on a 1.15 handle, and the AUD marginally outperformed ahead of the RBA’s decision this week.

Looking ahead, investors will eye key economic data releases such as Swiss CPI, Eurozone, UK, and US Final Manufacturing PMI, as well as speeches from Fed’s Daly, ECB’s Lane, and BoC’s Macklem. Additionally, the Bank of England will conduct a long-term gilt sale, while US financing estimates are expected to be released.

With ongoing uncertainty in global markets, investors may continue to seek safe-haven assets such as gold, which gained ground overnight. Meanwhile, the VIX index, a measure of market volatility, remained elevated above 20, indicating a degree of caution among traders.

Overall, while Asia-Pacific stocks were mixed, the Fed’s call for a rate cut in December suggests that monetary policy easing may continue to be a key driver of market sentiment in the near term.