Key Points

• China Inflation Mixed: CPI turned positive at 0.2% YoY while PPI fell 2.1% YoY, signaling easing consumer deflation but persistent industrial disinflation amid weak manufacturing and exports.
• Asia Rebound Led by Korea: Kospi +3.0% to 4,073 as banks/insurers rallied; BOJ minutes signaled conditions for a near-term hike are “almost” met, lifting JGB yields toward ~1.7%.
• Shutdown Deal Boosts Risk: Global equities advanced on progress to end the 40-day U.S. government shutdown; yields firmed and the dollar steadied as markets weighed December Fed-cut odds.
• Nuclear Buildout vs. Waste Gap: U.S. plans to quadruple nuclear output (large reactors and SMRs) face unresolved long-term waste storage, leaving taxpayers with mounting interim costs.

China CPI Turns Positive, PPI Slump Persists as Growth Signals Diverge

China’s inflation pulse firmed in October with CPI up 0.2% YoY (vs. 0.0% expected) and flat-to-modest gains MoM, while producer prices fell 2.1% YoY—extending a three-year factory-gate slump. The data underscore a mixed backdrop: holiday demand and policy support are lifting headline prices and industrial profits, yet manufacturing contracted to a six-month low and exports unexpectedly fell, including a 25% drop to the U.S. Authorities continue to push domestic consumption and “effective investment,” and a recent U.S.–China trade truce could ease external headwinds, but sustained disinflation in industry points to ongoing overcapacity and soft private demand.

Asia Rebounds as Kospi Leads; BOJ Signals Tightening Bias

Asia-Pacific equities rose after last week’s AI-driven selloff, with South Korea’s Kospi up 3.0% to 4,073.24 led by banks and insurers (Samsung +2.8%, SK Hynix +4.5%). Japan’s Nikkei gained 1.26% (Topix +0.56%) as 10-year JGB yields touched ~1.7% after BOJ minutes suggested conditions for a near-term rate hike are “almost” met. Hong Kong’s Hang Seng rose 1.54%, China’s CSI 300 edged +0.17%, Australia’s ASX 200 +0.75%, and India’s Nifty/Sensex added ~0.5%. Sentiment was aided by China inflation beating expectations (CPI +0.2% YoY; PPI –2.1%), while U.S. macro signals remained mixed into an ongoing shutdown impasse.

Global Equities Rise as U.S. Shutdown Deal Progress Lifts Risk Appetite

Global stocks advanced on signs Washington is moving to end the 40-day government shutdown: Nasdaq futures +1.27%, S&P 500 futures +0.74%, with EUROSTOXX 50 and DAX futures up ~1.5%. Asia followed higher (MSCI Asia ex-Japan +1.36%, Nikkei +1.33%) as China’s CPI turned positive and PPI deflation eased. U.S. Treasury yields firmed (10Y ~4.14%) and the dollar steadied, with markets pricing roughly a 63% chance of a December Fed cut while officials signal caution. Oil ticked up and gold gained. Bottom line: a prospective deal boosts confidence and liquidity, but economists warn the shutdown’s growth dent won’t be quickly reversed.

U.S. Nuclear Buildout Accelerates, But Waste Solution Remains Elusive

A planned nuclear renaissance; driven by surging power demand from AI data centers and reshoring, faces the unresolved challenge of long-term waste disposal. The administration aims to quadruple output via large reactors and SMRs, with an $80B Westinghouse build program and multiple restarts/SMR projects in the pipeline. Yet over 95,000 metric tons of spent fuel remain at 79 sites and the DOE lacks a permanent repository, costing taxpayers up to $800M annually; Yucca Mountain is dormant while alternatives from deep repositories to reprocessing and boreholes compete amid skepticism. Investor lens: long runway for nuclear supply, but policy, permitting, and waste logistics are key execution risks.

Conclusion

Markets opened the week on firmer footing as Asia rebounded, led by Korea, while China’s inflation mix (CPI back to +0.2% YoY, PPI –2.1%) signaled easing consumer deflation but persistent industrial slack. Hopes for a U.S. shutdown deal improved risk appetite and steadied the dollar, though policy timing on Fed cuts remains data-dependent. Structurally, Washington’s push to scale nuclear capacity highlights a multi-year capex theme tempered by unresolved waste logistics and permitting risk. Near term, we favor quality balance sheets and earnings visibility over multiple expansion; watch BOJ normalization signals, incoming U.S. inflation and labor prints, and any incremental Chinese demand support.

Investment Insights

• China inflation mix: Maintain selective exposure; favor firms with pricing power and domestic demand tailwinds; be cautious on industries facing persistent producer-price pressure.
• Asia rebound & BOJ tilt: Position for gradual policy normalization in Japan and cyclical recoveries in Korea; prioritize balance-sheet strength over momentum.
• Shutdown progress: A potential deal supports risk appetite but not lost output; stick with companies resilient to policy noise and dependent on underlying demand, not stimulus.
• Nuclear theme: Treat the buildout as a long-duration opportunity; focus on suppliers and utilities with clear project visibility while factoring in permitting and waste-management risks.

Economic Calendar

Date	Event	Why It Matters
November 10, 2025	FOMC Minutes (Oct 28–29 Meeting)	Details the Fed’s debate on growth, inflation, and the bar for future cuts—key for rates, USD, and risk assets.
November 13, 2025	U.S. CPI (October)	Primary inflation print driving near-term Fed expectations and bond-equity correlations.
November 14, 2025	U.S. Retail Sales (October)	Real-time read on consumer demand heading into the holiday season; key for growth and earnings tone.
November 14, 2025	U.S. PPI (October)	Upstream price pressures that can foreshadow CPI/PCE trends and margin risk.
November 19, 2025	UK CPI (October) & Eurozone HICP Full Release (October)	Key Europe inflation updates shaping BoE/ECB paths and euro/sterling direction.

Sources: Federal Reserve events calendar; Investing.com CPI schedule; U.S. Census retail sales release schedule; BLS PPI schedule/FRED; Eurostat and UK ONS release calendars.