The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
2108 ET - Asian currencies consolidate against dollar as traders weigh Middle East developments. President Trump on Monday sought to quell a growing conflict between Israel and Hezbollah that threatens to derail U.S. peace talks with Iran. "We expect the U.S. and Iran to agree to gradually re-open the Strait of Hormuz and a 60-day extension of the ceasefire to negotiate Iran's uranium enrichment sometime this week," CBA's Kristina Clifton says in a research report. "Good news about the war ending will weigh on the USD because it is a safe-haven currency," the senior economist and senior currency strategist adds. The dollar is little changed at 159.67 yen, and 0.1% lower at 1,511.50 Korean won, LSEG data show. (ronnie.harui@wsj.com)
2107 ET - Japan could be just one step away from a historic yen collapse as it faces the risk of a prolonged oil price surge and government fiscal loosening, says SMBC Nikko Securities strategist Makoto Noji. While cost-push inflation over the past three years has severely burdened the Japanese public, stimulating demand at this juncture would only accelerate inflation, Noji says. "I hope to see a rising sentiment that further yen-buying intervention is necessary, along with self-help efforts--specifically interest-rate hikes and sealing off fiscal expansion--to avoid inflation and a weaker yen," he says. Finance Minister Satsuki Katayama said Tuesday that the government would take appropriate action in the currency market if necessary.(megumi.fujikawa@wsj.com)
2018 ET - Japanese stocks fall, weighed by economic uncertainty caused by the Iran war. Auto and chemical stocks are leading declines. Toyota Motor is down 2.9% and Shin-Etsu Chemical is 4.1% lower. The dollar is at 159.65 yen, compared with Y159.49 as of Monday's Tokyo stock market close. Investors are focusing on developments in the Middle East and their implications for the supply of energy and petrochemical products. The Nikkei Stock Average declines 0.4% to 66648.93. (kosaku.narioka@wsj.com; @kosakunarioka)
2006 ET - JGBs edge lower in price terms in the morning Tokyo session as investors focus on Middle East developments. President Trump on Monday sought to quell a growing conflict between Israel and Hezbollah that threatened to derail U.S. peace talks with Iran. Another focus is the Japanese Finance Ministry's auction today of about 2.6 trillion yen of 10-year JGBs. The auction is likely to "clear smoothly," SMBC Nikko Securities' Miki Den says in a research report. "Market sentiment appears to be improving, as indicated by the super-long auctions in May clearing smoothly. There may be some short-covering demand as well," the senior Japan rates strategist adds. The 10-year JGB yield is up 0.5 bp at 2.685%. (ronnie.harui@wsj.com)
1948 ET - Japanese stocks may rise as optimism over artificial intelligence-demand continues despite uncertainty over the Iran conflict. Nikkei futures are up 0.1% at 67115 on the SGX. The dollar is at 159.64 yen, compared with Y159.49 as of Monday's Tokyo stock market close. Investors are focusing on developments in the Middle East and their implications for energy prices. The Nikkei Stock Average rose 0.9% to a record 66934.33 on Monday. (kosaku.narioka@wsj.com)
1901 ET - For UBS, Dexus is stuck in the "too hard" basket, despite trading at a 37% discount to net tangible assets. Reasons for caution include the lawsuit involving Australia Pacific Airports Corp. The court recently dismissed Dexus's claims and UBS thinks the case could stretch well into FY27 if Dexus appeals the decision. Investors will be watching whether those APAC shareholders represented by Dexus will be forced to sell their shares. Also, Dexus's funds from operations are challenged and a buyback program is unlikely to offer meaningful support, UBS says. And there are still questions about labor reliability, timelines and construction costs for Dexus's Waterfront Brisbane project, analyst Cody Shield says. "Of the large-cap A-REITs offering exposure to the office recovery thematic, we have a strong preference for GPT," UBS says. (david.winning@wsj.com; @dwinningWSJ)
1546 ET - Treasury yields and the dollar pare down increases fuelled by reports that Iran is halting peace talks, after President Trump says negotiations are ongoing. Moves on bond and FX markets closely follow oil futures, as investors link energy prices to inflation and the possibility of high interest rates in the U.S. May U.S. PMI ticks higher and markets focus on the JOLTS report, due tomorrow. The WSJ Dollar Index rises 0.2%. The 10-year yield rises 0.022 percentage point to 4.475% and the two-year adds 0.038 p.p. to 4.051%, both off intraday highs. (paulo.trevisani@wsj.com; @ptrevisani)
1540 ET - Worker remittances to Mexico totaled $4.98 billion in April, up 3.7% from the year-earlier month in a third consecutive year-on-year increase, the Bank of Mexico reports. In the first four months of the year, remittances were up 2.6% at $19.68 billion. While unemployment among Hispanics in the U.S. increased in April, the unemployment rate for Mexican migrants declined, analysts at Grupo Financiero Banorte say in a note. U.S. government moves to tighten banks' customer identification procedures don't directly address remittance flows, but open "a meaningful possibility of an impact on traditional remittance channels," they add. (anthony.harrup@wsj.com)
1527 ET - Canada's productivity remains in decline, reflecting a poor record on business investment, says the Bank of Canada's No. 2 official, Carolyn Rogers. Testifying before a committee of legislators, Rogers says business investment "is not where it needs to be," in reference to five straight quarters of declines in that category. "That's to be expected in an environment with the degree of uncertainty that businesses are facing right now," Rogers says, in reference to U.S. tariff policy. She says the Liberal government has outlined measures that might help create a better environment for business investment. However, "there needs to be a sustained focus on implementing some of these plans," she says. The previous administration, under former PM Justin Trudeau, faced sharp criticism for failing to execute on promised changes to policies. (paul.vieira@wsj.com; @paulvieira)
1433 ET - Purchasing managers indexes for Mexico point to continued sluggishness in manufacturing in May, with all three readings below 50, indicating contraction. "Steep rises in their expenses could not be passed on through higher selling prices due to a highly challenging demand environment and fierce market competition," S&P Global says. While the narrower margins help to keep inflation across the wider economy in check, "it has prompted firms to tighten their purse strings." S&P Global's Mexico index rose to 49.6 from 47.7 in April, the Mexican Institute of Finance Executives' manufacturing index slipped to 48.5 from 49, and the Inegi/Bank of Mexico PMI fell 1.1 points to 49.2. (anthony.harrup@wsj.com)
1318 ET - Active global asset managers are adding more Canadian public-sector debt -- federal and provincial -- to their portfolios as the Treasury market faces questions about U.S. debt sustainability, says Tiago Figueiredo, economist at Desjardins Group. Investors "appear to be treating Canadian public-sector duration as a credible high-quality alternative to Treasuries, albeit with a much smaller market," Figueiredo says, adding the term premium embedded in longer-term government of Canada bonds is among the lowest in developed-world markets. He notes Canadian corporate bond allocations remain well below passive-benchmark weights. (paul.vieira@wsj.com; @paulvieira)
Hyperliquid's current market cap is only a fraction of other cryptocurrencies like BTC or ETH, at just over $18 billion. "Hyperliquid Hits Record as ETFs Inflows Continue -- Market Talk," at 11:53 a.m. ET incorrectly called the cryptocurrency ETF rather than ETH.
(END) Dow Jones Newswires
June 01, 2026 21:08 ET (01:08 GMT)
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