Japan’s 10-year government bond yield fell to around 2.9% on Tuesday, nearing six-week lows after the latest 20-year bond auction attracted record demand, reflecting strong investor interest in higher-yielding debt. Japanese yields have climbed to multi-decade highs earlier this month following a global bond selloff driven by persistent energy-related inflation amid the conflict in the Middle East. Japan’s worsening fiscal outlook also contributed to rising yields as Prime Minister Sanae Takaichi pursued expansionary fiscal policies, although she has repeatedly sought to reassure markets that the government would avoid adding to the debt burden. On the monetary policy front, the Bank of Japan is widely expected to keep interest rates unchanged next week, with Governor Kazuo Ueda anticipated to provide further guidance on the timing of the next rate hike.

Gold prices fell toward $4,100 per ounce on Tuesday, marking a third straight session of declines as elevated oil prices heightened inflation concerns and reinforced expectations of tighter monetary policy. The metal also faced pressure from a stronger US dollar and rising bond yields. Oil prices remained firm amid ongoing hostilities in the Middle East and Eastern Europe, while Iran continued to assert its control over the Strait of Hormuz. Meanwhile, the US Federal Reserve is widely expected to keep interest rates unchanged next week, with markets pricing in roughly a 94% probability of a rate hike in December. Elsewhere, the European Central Bank is expected to implement at least one additional 25-basis-point rate increase this year to address persistent inflationary pressures. Bank of Japan Governor Kazuo Ueda also noted that underlying inflation was “quite close” to the central bank’s 2% target, signaling the possibility of further monetary tightening.

The People's Bank of China kept its key lending rates at record lows for the 17th straight month in October 2026, even as the yuan continued to strengthen amid strong economic data that met expectations. The economy grew 4.5% in Q3, exceeding expectations and reducing the urgency to step up support to meet its annual growth target. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was left at 3.0%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%. On Monday, PBOC Governor Pan Gongsheng said the central bank would advance reforms to pricing benchmarks, shifting lending away from a relatively narrow reliance on the LPR toward a more diversified set of benchmarks. According to analysts, the PBOC is considering switching its main policy rate to the overnight reverse repurchase rate in a move aimed at improving monetary policy transmission to support the economy.

Brent prices steadied above $109 per barrel on Tuesday, holding recent gains as investors weighed escalating conflicts in the Middle East and Eastern Europe against signs of robust energy flows from the Persian Gulf. US Energy Secretary Chris Wright said Persian Gulf oil shipments had recovered to about 80% of pre-war levels, although refined-product deliveries remained limited. The Trump administration is also authorizing the sale of sanctioned oil tankers to enable them to transport crude legally, with the global “dark fleet” estimated at around 1,600 vessels. Meanwhile, Iran continued to assert control over the Strait of Hormuz, with maritime authorities reporting multiple attacks on commercial ships. Saudi Arabia and Iran-backed Houthi militants in Yemen also traded strikes, while Russia and Ukraine resumed attacks on energy infrastructure.

Foreign direct investment (FDI) into Indonesia, excluding the financial and oil and gas sectors, surged 27.5% year-on-year to a record high of IDR 270.2 trillion (US$14.99 billion) in Q3 2026, following a 27.4% jump in Q2, marking the strongest growth since Q4 2024. The increase came despite persistent global economic uncertainty amid the conflict in the Middle East. The base metals industry attracted the largest inflows, while Hong Kong was the top source of investment (US$5.2 billion), followed by Singapore (US$5.1 billion), the US (US$1.7 billion), China (US$1.1 billion), and South Korea (US$0.8 billion). Meanwhile, total direct investment, including domestic sources, reached IDR 528.7 trillion, up 7.6% year-on-year, creating more than 745,634 jobs. FDI accounted for 51.1% of total investment in Q3.

The headline inflation rate in Canada rose to 3.1% in September of 2026 from 3.0% in the previous month, the highest reading since the two-year high of 3.2% in May, but below the market consensus of 3.2%. Prices accelerated for gasoline (27.8% vs 22.8% in August), tracking the recent surge in crude oil prices as the war in the Middle East prompted the US and Iran to tighten their blockade of oil and fuel tankers crossing the Persian Gulf. Excluding gasoline, the CPI rose by 2.2% annually, slowing from the 2.4% increase in the previous month. In the meantime, shelter costs also climbed (1.8% vs 1.5%) as the surge in longer-term bond yields pushed homeowners' and mortgage insurance up 4.9% annually. On the other hand, inflation softened for food (2.2% vs 2.8%) due to a sharp slowdown in food purchased from grocery stores (1.7% vs 2.8%). The core inflation rates tracked by the BoC remained below the 2% threshold, with the trimmed-mean rate at 1.8%, below expectations of 1.9%.