To The Moon

Key Points

Asia Rallies on Truce: Japan’s Nikkei hits a record as a Trump–Xi rare-earths truce lifts risk sentiment; Korea gains on Nvidia-led AI investments while China’s PMI at 49 underscores drag.

Auto Chip Squeeze: Dutch takeover of Nexperia and China export blocks spark a legacy-chip shortage; Honda trims output and OEM “war rooms” race to avoid Q4 line stoppages.

Rare Earths Pop: U.S.-listed rare-earths miners rise as Beijing delays new export controls for one year after the Trump–Xi meeting, easing near-term supply risk though prior curbs remain.

China More Investible (Cautiously): Tariff relief and limited tech access temper geopolitical overhangs, but foreign exposure stays low despite strong CSI 300/HSI gains; flows hinge on growth, policy traction, and a softer dollar.

Asia Rallies on Trump–Xi Truce; Japan Sets Records, Korea Lifted by Nvidia

Japan led regional gains after Washington and Beijing agreed a rare-earths truce, with the Nikkei 225 jumping over 2% to a record 52,411.34 and the Topix up 0.94% to 3,331.83.

South Korea outperformed as Nvidia deepened partnerships, fueling AI build-out: the Kospi rose 0.5% to a fresh high of 4,107.5 and the Kosdaq gained 1.07% to 900.42; Hyundai climbed 9.6% on plans to deploy 50,000 Blackwell GPUs and invest about $3 billion in local AI infrastructure, while Naver added ~5% as it expands capacity with more than 60,000 Nvidia GPUs.

Australia’s ASX 200 finished flat at 8,881.9. China lagged, with the Hang Seng down 1.43% to 25,906.65 and the CSI 300 off 1.47% to 4,640.67 after the October manufacturing PMI fell to 49.0, missing expectations and reinforcing a months-long contraction.

Panasonic slid over 8% after cutting its profit outlook on weaker energy-unit earnings. U.S. markets closed lower overnight as Big Tech earnings weighed: S&P 500 −0.99% to 6,822.34, Nasdaq −1.57% to 23,581.14, Dow −0.23% to 47,522.12.

$Honda(HMC)$ 

Auto Makers Brace for Nexperia Chip Crunch as Geopolitics Bite; “War Rooms” Activate

Global carmakers are scrambling to manage a fresh semiconductor squeeze after the Dutch government took control of Nexperia and China blocked exports, choking supplies of legacy chips used in basic vehicle functions.

Honda became the first to trim output, affecting major North American plants, while Volkswagen said it has at least a week of buffer and Stellantis, Mercedes-Benz and others have activated cross-functional “war rooms” to secure parts on the open market and via alternative suppliers.

Europe’s ACEA warned assembly-line stoppages could be “days away” without a diplomatic fix.

Executives from Ford and GM framed the disruption as a political issue centered on U.S.–China tensions, with Europe caught in the middle—raising the risk of broader fourth-quarter production losses if relief doesn’t materialize.

Rare Earths Miners Rally as Beijing Pauses New Export Curbs After Trump–Xi Meeting

U.S.-listed rare earths names advanced after China agreed to delay additional export controls for one year, easing near-term supply risk following talks between President Trump and President Xi.

Critical Metals gained nearly 7% premarket, USA Rare Earth rose about 6%, and Energy Fuels added ~3%, with MP Materials and NioCorp up around 3%.

While existing restrictions from April remain, the pause—paired with Washington’s move to cut fentanyl-linked tariffs—tempers immediate pressure on downstream sectors from autos to defense.

The relief comes against a structurally tight backdrop: China still produces roughly 70% of global rare earths and processes nearly 90%, underscoring persistent strategic dependence even as markets price a tactical de-escalation.