Global Markets Update: RBA Hikes Rates as KOSPI Plunges and Energy Deals Expand

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.85%, the highest level since 2008, as Governor Michele Bullock warned that persistent inflation required further tightening.
  • South Korea's KOSPI index plummeted nearly 4% intraday before paring some losses, driven by a massive sell-off in semiconductor heavyweights Samsung Electronics and SK Hynix.
  • ADNOC Gas (ADNOCGAS) secured a major five-year LNG supply deal with TotalEnergies (TTE), while also announcing a Final Investment Decision (FID) for the Ruwais Diyab project to boost production capacity.
  • Thailand is moving to protect its domestic auto industry by proposing a significant tax hike on fully imported electric vehicles, increasing the rate from 10% to 35%.
  • A US Federal Court blocked a Trump administration demand for states to withhold votes of alleged noncitizens, a critical ruling just hours before the 2026 midterm elections.

Monetary Policy and Economic Indicators

The Reserve Bank of Australia (RBA) delivered a hawkish surprise on Tuesday, increasing the official cash rate to 4.85%. Governor Michele Bullock stated that higher interest rates were "required" to bring inflation back within the 2%–3% target range after recent data showed headline CPI surging to 4.3%. This marks the fifth rate hike in 2026, as the central bank struggles to balance a tight labor market against persistent supply shocks.

In the Middle East, Saudi Arabia's economic momentum showed signs of cooling as the October Composite PMI declined to 54.0. While still in expansionary territory, the figure signals a slower pace of business activity growth compared to previous months. Analysts suggest the dip reflects a normalization of demand following a period of rapid post-pandemic industrial expansion.

Equity Markets and Corporate Developments

Asian markets faced significant volatility, led by a sharp downturn in Seoul. South Korea’s benchmark KOSPI dropped as much as 3.77% during Tuesday's session, falling to the 5,600 level. The decline was fueled by a rout in tech stocks, with Samsung Electronics (005930) and SK Hynix (000660) seeing heavy selling pressure amid global concerns over AI profitability and upcoming US political shifts.

In the UK, JPMorgan (JPM) analysts turned bullish on Whitbread (WTB), raising the price target for the Premier Inn owner to 3,100p from 2,740p. The upgrade follows a favorable UK Autumn Budget that introduced caps on business rate increases for the hospitality sector, which the company expects will have a "significant positive impact" on its bottom line.

Energy and Infrastructure

ADNOC Gas (ADNOCGAS) dominated energy headlines at the ADIPEC conference in Abu Dhabi. The company signed a five-year agreement to supply up to 1.6 million tons of liquefied natural gas (LNG) to TotalEnergies (TTE). Simultaneously, ADNOC announced a Final Investment Decision (FID) for the Ruwais Diyab unconventional gas development, which is expected to produce 345 million standard cubic feet per day by 2029 to meet growing global demand.

Thailand is also restructuring its industrial landscape, with the Finance Ministry proposing to raise the tax on fully imported electric vehicles (EVs) by 25 percentage points, bringing the total rate to 35%. The policy aims to force international manufacturers to establish local production bases rather than relying on completely built-up (CBU) imports, primarily from China.

Political and Legal Landscape

On the eve of the US midterm elections, a federal judge issued a temporary restraining order blocking the Trump administration from pressuring states to segregate or withhold ballots of alleged noncitizens. The court ruled that the federal demand risked disenfranchising eligible naturalized citizens and overstepped federal authority over state-run elections.

Meanwhile, in a move to bolster international mobility, South Korea and Italy have entered formal discussions to recognize each other’s driver’s licenses. The agreement is expected to simplify bureaucratic hurdles for expatriates and business travelers, strengthening bilateral ties between the two G20 economies.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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