The final Asian trading session of the week saw light flows but active stock markets. The Nikkei opened sharply higher, climbing above 51,000 and testing its monthly high. However, the advance failed to hold as profit taking trimmed the initial 1.7% gain by half.

In commodities, gold faced some selling pressure following a strong rally during US trading. It slipped by $15 to $1,267 per ounce, while silver remained flat after earlier reaching a record high. Meanwhile, WTI crude oil rose 44 cents to $58.04, supported in part by remarks from Donald Trump about a potential escalation to ground operations in Venezuela. This development sparked moderate crude buying but did not significantly affect overall risk sentiment.

US Treasury yields moved higher, with the 10-year note up 1.6 basis points to 4.15%. Currency markets lacked direction amid a quiet news day, with the British pound leading gains and the Japanese yen lagging behind.

Elsewhere, Japan’s industrial production for October showed a slight year-on-year increase of 1.5%, just below the preliminary estimate of 1.6%. In Canadian politics, Conservative leader Carney appears to be gaining majority support after a key party defection. Additionally, Japan was struck by a magnitude 6.7 earthquake, triggering a one-metre tsunami.

Technological advancements continue at pace, with GPT-5.2 expected to represent a significant leap forward in AI development. Reflecting on the AI race, Donald Trump suggested that ultimately there might only be one winner between China and the USA.

Forex traders should monitor geopolitical developments in Venezuela closely for potential market volatility, while also keeping an eye on global economic data and risk sentiment as trading enters the new week.

Original Source: Adam Button of investinglive.com