Brent crude futures were up $1.31, or 1.46%, at $95.87 a barrel, while U.S. West Texas Intermediate was up 1.28% at $89.67 a barrel. — Lee Ying Shan
South Korea, Japan defense stocks rise after confirmation of North Korean missile barrage
Defense-related stocks listed in South Korea and Japan jumped after military authorities in Seoul confirmed that North Korea had fired more than 10 types of missiles off its east coast. The missile barrage included a ballistic missile that landed in open waters on the South Korean side of the Northern Border Line, a de facto sea border separating the two Koreas – the first such incident since the Korean War, officials said. Shares of defense firms Hanwha Aerospace jumped more than 5 percent in morning Korean trade and Victek rose more than 7 percent. Japanese defense stocks traded slightly higher with Hosoya Pyro-Engineering up nearly 1 percent. – Jihye Li
Bank of Japan board members discuss inflation, Kuroda hints at future policy change
Policy board members at the Bank of Japan’s latest meeting agreed that it is appropriate to “persistently pursue large-scale monetary easing,” according to minutes released on Wednesday. One member said the central bank’s dovish stance should continue even if inflation accelerates in the near term, as long as expectations remain subdued. The BOJ’s monetary policy is aimed at price stability, not exchange rates, some members said, and it should “carefully explain” the need to maintain the current stance. Some members said expanding inbound tourism consumption was a way to take advantage of the weaker yen. Separately, BOJ Governor Haruhiko Kuroda reportedly told parliament that the yield curve control policy could be adjusted in the future, according to Reuters. “If the achievement of our 2% inflation target emerges, more flexible yield curve control could become an option,” Kuroda was quoted as saying. — Abigail Off
Inflation in South Korea rises in October, more than estimates
South Korea’s consumer price index rose 5.7 percent in October from a year earlier, higher than the average estimate of 5.6 percent in a Reuters poll. Data from the Korea Statistics Agency showed prices rose 0.3 percent compared to the previous month. Electricity, gas and industrial prices led the rise, and core inflation, which excludes food and oil prices, rose 4.8% from a year ago. – Jihye Li
CNBC Pro: Goldman’s Currie reveals ‘best’ hedge against inflation, rate hikes and geopolitical risks
Goldman’s Jeff Currie says there is one investment that can protect investors from rising interest rates, inflation and geopolitical risk. Currie, head of global commodities research at Goldman Sachs, said it has upside potential of 20-30% in the near term, with additional upside risks to the price target. CNBC Pro subscribers can read more here. — Ganesh Rao
Bigger China stocks rise on unconfirmed posts on resumption of talk
Shares in Hong Kong and mainland China rose on Tuesday after unconfirmed reports circulated about the formation of a committee to restart talks in China. Chinese Foreign Ministry spokesman Zhao Lijian told Reuters he was not aware of the situation. “I don’t know where you got this information from. I honestly don’t know anything about it,” Zhao was quoted as saying. Economist Hao Hong of Grow Investment Group said on Twitter that the rumored committee is reviewing data from multiple countries and aims to reopen in March next year. – Jihye Li
Stocks close lower
Stocks finished lower as markets braced for another Fed rate decision expected on Wednesday. The Dow Jones Industrial Average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 fell 0.41% to 3,856.10. The Nasdaq Composite fell 0.89% to 10,890.85. — Samantha Subin
The Fed’s pivot is too far, says New York Life’s Goodwin
Investors may be a little too excited about potential changes from the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments. Goodwin said in a note that she expected the Fed to hike by 0.75 of a percentage point on Wednesday and by half a point in December, but that the slowdown should not be seen as the start of a major shift by the central bank. “A Fed pause is not the same as a pivot. Certainly, worsening economic and credit conditions could cause the Fed to pivot modestly at some point, but a full pivot into accommodative territory is highly unlikely next year,” Goodwin said in a Note. Goodwin pointed out that the first rate hikes should now begin to show their impact on the broader economy, rather than just housing. However, the Fed will need several months of data to go before changing course. “At this point, with inflation surprising as much as it already is, the Fed will want to see clear signs of a reversal in wage growth before changing. Recession should be seen as a base, not a risk,” Goodwin said. — Jesse Pound
