China and the 11-member ASEAN bloc signed an upgraded free trade agreement Tuesday in Malaysia, expanding cooperation in digital economy, green technology, and pharmaceuticals worth $771 billion annually. The deal has been in progress since November 2022 as Beijing seeks to counter U.S. trade pressures, while Xi-Trump is expected to meet in Seoul on October 31st. Chinese Premier Li Qiang pushed for accelerated trade liberalisation, while Singapore's Prime Minister Lawrence Wong praised the agreement's potential to unlock new growth opportunities. Yet economic gains were overshadowed by security tensions as Philippine President Ferdinand Marcos Jr blasted Chinese aggression in the South China Sea, a concern all Southeast Asians feel that China is actively ignoring. Beijing's sweeping territorial claims clash with multiple ASEAN members, and negotiations on a binding code of conduct remain stalled.

EQUITY

Wall Street cheered for a strong opening rally with things going well in the U.S.-China trade deal and investors pouring in equity ahead of this week's titan earnings, including Apple, Microsoft, and Amazon. Market sentiment turned clearly bullish, with fear gauges falling to multi-week lows with rumours that there will be continued inflows into equity until general AI is developed. Qualcomm topped the leaderboard in gains after unveiling a new AI chip to rival Nvidia.

GOLD

Gold has fallen to a 3-week low below $4,000 as improved risk sentiment and confidence in equity markets reduce demand for safe-haven assets along with profit-taking activity after reaching highs of 67% year to date. Analysts warn prices could drop further in the near term, with key support levels being tested.

OIL

Oil prices tugged down as OPEC+ nations moved toward increasing December output, with Saudi Arabia seeking to regain market share, offsetting positive momentum from US-China trade negotiations. Hungary became a U.S. target, forcing its hand to end its reliance on Russian oil imports, rejecting claims of leniency and insisting Budapest develop a plan to wean itself off Russian energy with support from the U.S. and neighbouring countries.

CURRENCY

The dollar index fell to a one-week low with a Fed rate cut on the line and heightened optimism in a trade framework agreement ahead of Thursday's Trump-Xi meeting at the APEC summit. The offshore Chinese yuan rallied to a one-year high, while the yen firmed ahead of the BOJ meeting, gaining support from Treasury Secretary Bessent's monetary policy comments, while the euro hit a one-week high. Risk-on sentiment dominated currency markets as traders positioned for dovish central bank decisions.