Chinese equities closed lower on Nov 6 (Fri): Shanghai Composite Index down 40.73 pts (-1.10%) at 3,649.18; Shenzhen Composite Index down 295.31 pts (-2.57%) at 11,175.78; CSI 300 Index down 59.13 pts (-1.44%) at 4,054.28; ChiNext Index down 101.57 pts (-3.96%) at 2,465.23; STAR 50 Index down 33.48 pts (-2.60%) at 1,253.20.

On Nov. 6 China's Defense Ministry responded to reports that Japan plans to list a 'virtuous cycle between defense and the economy' as a key pillar in this year's revised security documents and to treat the defense industry as an industrial-policy priority with the Defense Ministry involved in its development. Spokesman Chen Xi said this is a 'military‑industry‑driven national development' strategy that accelerates Japan's re-militarization, revives a pre‑war military‑industrial complex that was deeply embedded in the economy and drove expansion, and shows Japan's right wing has discarded the 'exclusive defense' guise. He warned the shift will accelerate societal 'war preparedness' and economic 'militarization', pose systemic risks to Japanese welfare and global peace and stability, and urged the international community to be highly vigilant and to resolutely prevent Japan from restarting its 'war machine' and returning to expansionism.

A global tech-led equity selloff pushed investors into safe havens on Friday, lifting Japanese government bonds and sending yields to multi-month lows. The 10-year JGB yield fell 14.5bps to 2.61%, its lowest since June 26; the 2-year, most sensitive to policy bets, dropped 13.5bps to 1.72% (lowest since Aug. 28); the 5-year fell 16.5bps to 2.025% (lowest since Aug. 6). The rout has prompted a reassessment of the Bank of Japan's chance of hiking next month; traders put the probability of a December hold at 58% and a hike at 42%. Mizuho Securities senior market economist Yusuke Matsuo said if market turmoil persists, the BOJ may find further rate rises more difficult, strengthening incentives to pause.