The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0302 GMT - The Bank of Japan is expected to keep its policy rate at 0.75% Tuesday, but any pause doesn't necessarily mean the bank is pushing hikes further out. "The bank has repeatedly emphasized that financial conditions remain accommodative and that its policy stance retains a tightening bias," says Sumitomo Mitsui Trust Asset Management economist Kei Fujimoto. "If tensions in the Middle East ease and uncertainty diminishes even slightly, a rate hike in June or July would become more likely." The bank's policy board is also slated to release its fresh forecasts on growth and prices Tuesday.(megumi.fujikawa@wsj.com)
0256 GMT - China's producer price index likely rose 0.5 percentage points sequentially in April, down from 1.0% month-on-month in March, say Citi analysts in a research note. Domestic gasoline and diesel prices have both fallen 4% to 8% from their April highs, they say. The analysts note that the outlook still hinges largely on oil, but the price transmission remains limited beyond energy and petrochemicals. Steel and cement prices are little changed, they point out. "Peak inflationary momentum may now be behind us," if no other significant factors emerge, they add. (tracy.qu@wsj.com)
0232 GMT - The Monetary Authority of Singapore's 10-year government bond auction to be held on Tuesday is likely to draw fair demand, OCBC Group Research's Frances Cheung says in a research report. "A bond/swap spread at 6bps or below is likely seen as supportive" of demand, the head of FX and Rates Strategy says. The 10-year issue "provides opportunities for investors who are light in their positions of that tenor," Cheung says. The MAS is scheduled to auction S$3.2 billion of sovereign securities due March 1, 2035, with the central bank intending to take S$300 million.(ronnie.harui@wsj.com)
0204 GMT - The Bank of Thailand is expected to keep its policy rate unchanged at 1.00% on Wednesday, despite inflation concerns, HSBC's Aris Dacanay says in a report. Consumer prices fell 0.08% in March, but the steep jump in diesel and gasoline prices could liftinflation by 2.5 percentage points to 2.9 percentage points by the end of April. "The sharp adjustment in fuel prices risks lifting headline inflation past the Bank of Thailand's 1%-3% target band," he says. However, BOT is likely to wait for more data before deciding to tighten its monetary policy, as it has limited room to pre-empt the potential spillover effects of oil prices on inflation.(amanda.lee@wsj.com)
0146 GMT - Asian currencies mostly edge higher against the dollar in the morning session as traders weigh Middle East developments. Markets have been trying to digest ongoing uncertainty around the U.S.-Iran conflict, along with other factors, including the strong artificial-intelligence build-out, MUFG Bank's Michael Wan says in a research report. "The good news for Asia is that the AI build-out globally remains very strong and if anything seems to be accelerating," the senior currency analyst adds. The U.S. dollar edges 0.1% lower to 1,474.60 won and is down 0.1% at 1.2749 Singapore dollars, while the Australian dollar rises 0.3% to US$0.7168, LSEG data show. (ronnie.harui@wsj.com)
0143 GMT - The Bank of Japan is expected to stand pat this week as oil shocks from the Mideast war threaten to cause demand destruction on the one hand, and further trigger pre-existing inflationary risks on the other, says Vishnu Varathan at Mizuho Securities. The BOJ is stuck between a rock and a hard place as it doesn't have clarity on which risk will prevail and the attendant response to adopt, he says in an email. Elevated inflation predating the Mideast crisis and acute yen pressures are in the way of the BOJ's ability to pre-emptively ease to cushion against potential growth shocks. At the same time, it also can't hike too much too soon lest it ends up destroying any shot at enduring, healthy reflation, he adds. (monica.gupta@wsj.com)
0104 GMT - The yen's depreciation pressure could build, analysts of Nomura's FX Research team say in commentary. "USD/JPY is approaching the 160 level again, while markets increasingly expect the BOJ to skip an April hike," the analysts say. If expectations for a BOJ rate increase in June also fade, concerns that Japan's central bank is "behind the curve" and carry-trade funding demand could push the yen lower, the analysts say. The U.S. dollar is little changed at 159.40 yen, while the Australian dollar is up 0.2% at 114.09 yen and the euro is 0.1% higher at 186.86 yen, LSEG data show. (ronnie.harui@wsj.com)
0042 GMT - Japan's Nikkei Stock Average is flat at 59724.21 as gains in electronics stocks offset losses in brokerage and pharmaceutical shares. Fanuc is up 11%, and Panasonic Holdings is 4.4% higher while Chugai Pharmaceutical is down 15% and Nomura Holdings is 5.4% lower. Investors are closely watching Japanese corporate earnings. Developments in the Middle East are also in focus after President Trump said Saturday's shooting won't deter him from "winning the war in Iran." The dollar is at 159.51 yen, compared with Y159.77 as of Friday's Tokyo stock market close. (kosaku.narioka@wsj.com; @kosakunarioka)
0005 GMT - JGB futures edge lower in the early Tokyo session as the BOJ's two-day meeting kicks off, where the central bank is likely to leave rates unchanged. "Focus has shifted to how strongly it will signal a rate hike at the June meeting," Citi Research's Tomohisa Fujiki says in a research report. The BOJ is widely expected to raise its outlook for prices and lower its outlook for growth, but it is unlikely to be particularly confident in its forecasts, the rates strategist says. The BOJ will probably take more time to gauge effects on Japan's real economy from the Middle East situation, Fujiki adds. The benchmark 10-year JGB futures are 0.06 yen lower at 129.94 yen. (ronnie.harui@wsj.com)
2348 GMT - Japanese stocks may rise after U.S. tech stocks climbed on Friday despite caution over the Middle East conflict. Nikkei futures are 0.5% higher at 59975 on the SGX. The dollar is at 159.57 yen, compared with Y159.77 as of Friday's Tokyo stock market close. Investors are closely watching developments in the Middle East after President Trump said Saturday's shooting won't deter him from "winning the war in Iran." Japanese corporate earnings are also in focus. The Nikkei Stock Average rose 1.0% to 59716.18 on Friday. (kosaku.narioka@wsj.com)
(END) Dow Jones Newswires
April 26, 2026 23:02 ET (03:02 GMT)
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