investingLive Asia-Pacific FX news wrap: Amazon shares trashed

Amazon's Earnings Impact

Amazon's Q4 2026 earnings report exceeded revenue expectations but had a slight EPS miss, leading to a significant sell-off in shares, which plunged over 10% in after-hours trading. The major concern was the company's projected capex of around $200 billion for 2026, far exceeding the consensus of $146 billion. This has reignited worries regarding cash flow and near-term returns. The initial reaction was severe, impacting U.S. equity index futures, although they later recovered from earlier lows.

Impact on Gold and Silver Trading

In the commodities market, the CME has raised the margin requirements for key futures contracts for gold and silver due to extreme volatility. The initial margin for COMEX 100 gold futures has been raised from 8% to 9%, and for COMEX 5000 silver from 15% to 18%. This change is a response to the violent price swings recently experienced. Precious metals fell during early trading in Asia but have shown signs of stabilizing.

Australian Monetary Policy

In Australia, RBA Governor Bullock defended this week’s rate hike, noting the economy is more capacity constrained than previously assessed. The Australian dollar traded within a narrow range, briefly dipping below 0.6910 before bouncing back towards 0.6950.

Outlook for Japan's Monetary Policy

In Japan, BoJ board member Masu stated that the central bank has exited extraordinary easing and will continue to raise rates if the economic outlook for January is realized, but with caution to avoid disturbing the wage-price cycle. He highlighted the double-edged nature of yen weakness, which benefits profits but contributes to imported inflation.

India's Monetary Policy

India's RBI maintained the repo rate at 5.25%, with the rupee showing little change, while the upcoming elections introduce fresh risks for yen and JGBs.