Global Big Picture: Japan's Bond Impact & Significance of India, EU Trade Deal

• Japan's snap election may lead to increased fiscal spending, causing volatility in JGBs due to market skepticism about potential debt increases.
• The EU-India trade deal, covering 2 billion people and a quarter of global GDP, signifies a shift in trade alliances and could significantly benefit European automotive companies.
• South Korea's Kospi has outperformed due to memory chip companies, but 'frothy' expectations could lead to sell-offs if earnings disappoint, with Lunar New Year potentially adding to risk aversion.

The discussion covers the potential market impact of Japan's snap election and increased fiscal spending, the significance of the EU-India trade deal as a sign of geopolitical fracturing and new trade alliances, and the outlook for South Korean markets, particularly memory chip companies, ahead of Lunar New Year.