The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0316 GMT - The Singapore dollar consolidates against its U.S. counterpart in the Asian session as traders weigh Middle East developments. On the one hand, President Trump called off a planned military strike on Iran to allow more time for U.S.-Iran talks, analysts of Maybank's Treasury and Markets Research say in a research report. On the other hand, uncertainty has continued after Trump later downplayed the likelihood of a near-term deal, the analysts say. The U.S. dollar is little changed at 1.2819 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)
0205 GMT - South Korea's central bank would wait to confirm that a rate increase wouldn't destabilize the still-fragile domestic recovery and seek evidence of growth-led inflationary pressures, Nomura analyst Jeong Woo Park says in a note. The semiconductor super cycle's spillover to domestic demand remains limited, sustaining K-shaped growth patterns, while inflation is being driven more by the current oil price shock, supporting a hawkish Bank of Korea stance, the note says. Nomura says conditions remain premature for further tightening as there is no confirmation yet of a sustainable consumption recovery or rising inflation expectations. (venkat.pr@wsj.com)
0201 GMT - Bank Indonesia is likely to prioritize currency stability at its policy meeting later, DBS's Radhika Rao says as the rupiah continues to touch record lows against the greenback. Hotter U.S. inflation data has widened interest-rate differentials, which bodes unfavorably for the rupiah. Despite policymakers mounting a strong multi-pronged defense--including spot market intervention--the currency has been one of the worst performers year to date, the economist says. DBS expects BI to increase the benchmark rate by 25 bps to 5.0% to affirm its pro-stability bias. Market pricing for further rate moves will hinge on policy guidance, Rao adds. "Overall, persistent rupiah weakness despite sustained intervention, declining foreign reserve levels, and the widening spread versus SRBIs support the case for tighter rates." (fabiana.negrinochoa@wsj.com)FX Intervention Risks Rising Again as 160 Yen Comes Back Into Focus. "FX Intervention Risks Rising Again as 160 Comes Back Into Focus -- Market Talk," at 0056 GMT, left off the word "Yen" in the headline.
0056 GMT - Risks of foreign exchange intervention by Japanese authorities to prop up the yen against the dollar are rising again as the key 160 yen level comes back into focus, says Fawad Razaqzada, market analyst at FOREX.com, in an email. "The USD/JPY outlook remains firmly pointed towards the exchange rate returning to the 160.00 area, which investors increasingly view as the line in the sand for Tokyo policymakers," says Razaqzada. "If authorities refrain from stepping in around those levels again, attention is likely to shift quickly towards the 161.00-162.00 region," the analyst adds. The dollar is little changed at 158.98 yen, LSEG data show. (ronnie.harui@wsj.com) Corrections & AmplificationsThis headline was corrected at 0124 GMT to reflect the proper monetary denomination of Yen in the headline. The original headline omitted it.
0042 GMT - Asian currencies consolidate against the dollar in early trade, but may be weighed by risk-off mood. The continued price sell-off in bonds worldwide has weighed on sentiment, Commerzbank Research analysts say in a research report. "U.S. bond yields rose 6-8bp across the curve [overnight] as the markets increased bets of a Fed rate hike by year-end," the analysts say. The Fed funds futures are pricing in 20 bps worth of rate increases by end-2026 or 80% chance of a 25bp hike, versus Monday's 13 bps worth of rate increase, they add. The dollar rises 0.3% to 1,511.80 won, but is little changed at 1.2819 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)
0022 GMT - The dollar is still in a solid uptrend against the yen, but two-way volatility is rising, based on the one-hour chart, StoneX's Matt Simpson says in commentary. "With USD/JPY stalling around 159 alongside the nearby 159.52 daily high, [dollar] bears may be looking to fade rallies from here," the senior market analyst says. Given lingering risks of more intervention by Japanese authorities, dollar bulls may at least want to trade with caution, Simpson says. Also, daily relative strength index has stayed stuck in overbought territory for several sessions, which points to limited upside potential or even a pullback in the currency pair, Simpson adds. The dollar is little changed at 159.06 yen, LSEG data show. (ronnie.harui@wsj.com)
0018 GMT - JGBs are mixed in price terms ahead of Japanese Finance Ministry's auction today of about 700 billion yen of 20-year sovereign debt. The 20-year JGBs to be issued in May will be a reopening of the April 2026 issue, according to the ministry. "Yields have appeal, but interest rates are trending higher globally and the trigger for a reversal is uncertain," Citi Research's Tomohisa Fujiki says in a research report. "There is concern as to whether sufficient demand will be there for this supply, and investors may continue to wait and see," the rates strategist adds. The 10-year JGB yield edges 0.5 bps lower to 2.795%; the 20-year yield is unchanged at 3.780%. (ronnie.harui@wsj.com)
0014 GMT - Japanese stocks are lower in early trade as concerns about higher costs of energy and materials persist amid the Middle East conflict. Metals, electronics and tech stocks are leading the declines. JX Advanced Metals is down 2.5%, Kokusai Electric is 6.5% lower and SoftBank Group is off 5.8%. The dollar is at 159.09 yen, compared with Y159.04 as of Tuesday's Tokyo stock market close. Investors are closely watching developments in the Middle East. The Nikkei Stock Average is down 0.9% at 60008.60. (kosaku.narioka@wsj.com; @kosakunarioka)
2347 GMT - Japanese stocks may decline due to continued concerns about higher costs of energy and materials amid the Middle East conflict. Nikkei futures are down 0.1% at 60780 on the SGX. The dollar is at 158.99 yen, compared with Y159.04 as of Tuesday's Tokyo stock market close. Investors are focusing on developments in the Middle East and measures being taken by the Japanese government and businesses to deal with a shortage of energy and other products. The Nikkei Stock Average fell 0.4% to 60550.59 on Tuesday. (kosaku.narioka@wsj.com)
2327 GMT [Dow Jones]--Fisher & Paykel Healthcare's FY27 outlook will be key for investors when the medical device maker reports annual earnings on Tuesday, says Forsyth Barr. F&P Healthcare's shares have been sold off in recent weeks, and the stock is hovering close to lows last seen in March 2025. "Revenue trends remain robust, with growth implied by its 2H26 guidance particularly strong given a smaller flu season contribution," says analyst Ben Crozier. "However, gross margin possibilities are wider than usual." Air freight rates have risen. Still, Forsyth Barr reckons these are offset by lower sea freight rates. At current rates tariffs are unlikely to be a meaningful additional headwind in FY27, Forsyth Barr says. "But higher raw material costs are likely a 50-90 basis points headwind," it adds. Forsyth Barr retains a neutral call. (david.winning@wsj.com; @dwinningWSJ)
2310 GMT - Kiwi Property's forecast dividend of 5.75 New Zealand cents a share in FY 2027 represents growth of 2.7% on the prior year. That rise is line with its long-run goal. Still, Forsyth Barr says continued growth is reliant on a combination of a higher payout ratio, using some of its Drury land sale proceeds and potentially regearing its balance sheet. Kiwi Property does still have a couple of non-core assets that it can sell, Forsyth Barr says. "While divestment of these will be less dilutive than recent asset sales (The Plaza was circa 4% of assets but circa 8% of adjusted funds from operations), meeting growth targets will likely remain front of mind," says analyst Rohan Koreman-Smit. Forsyth Barr has a "neutral" call on Kiwi Property, which is down 2.2%, to NZ$0.91 today. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 19, 2026 23:16 ET (03:16 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments