Swiss Inflation Stable at 0.2 Percent Amid Economic Uncertainty

Asian stock markets surged, led by technology shares, driven by OpenAI's new partnerships with South Korean chipmakers Samsung and SK Hynix, fueling optimism about AI-related infrastructure investments. This rally extended to Japan, Taiwan, and Hong Kong, pushing the MSCI Emerging Markets Asia Index to its highest since mid-2021. Meanwhile, Switzerland's consumer price inflation remained steady at 0.2% year-over-year in September, consistent with previous months but below economists' expectations, reflecting low inflation pressure. The Swiss National Bank (SNB) recently paused its interest rate cuts, holding rates at zero, while signaling readiness for further easing if deflation returns. However, SNB President Martin Schlegel highlighted a higher threshold for reintroducing negative rates, balancing inflation risks against economic challenges such as the impact of US tariffs on Swiss exports. The Swiss franc and USD/CHF exchange rate showed little reaction, influenced by mixed signals from SNB policy stance and dovish expectations for the US Federal Reserve.