The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
2043 ET - The Australian dollar likely faces pullback risks versus its U.S. counterpart, StoneX's Matt Simpson says in commentary. The Australian dollar's recent rally against the greenback on the daily chart appears corrective, the senior market analyst notes. Unless there's decisively positive news for risk assets alongside strong [Australian] data and weaker data from the U.S., Simpson says his preference is to fade rallies below the cycle highs in anticipation of a move back towards US$0.7000. The Australian dollar is 0.1% lower at US$0.7177, LSEG data show. (ronnie.harui@wsj.com)
2029 ET - The yen consolidates against other G-10 and Asian currencies in early trade. Key events this week include BOJ Ueda's speech on Wednesday and Middle East developments, Nomura's FX research analysts say in commentary. The BOJ's June meeting is a major event for the yen, the analysts say. Market participants are watching Ueda's speech for signs of a rate increase and a more hawkish stance to avoid falling behind the curve, the analysts add. The U.S. dollar is little changed at 159.43 yen, the euro is flat at 185.72 yen, while the Australian dollar is 0.2% higher at 114.50 yen, FactSet data show. (ronnie.harui@wsj.com)
2023 ET - Japanese stocks are higher in early trade as gains in tech stocks offset losses in auto shares. Kioxia Holdings is up 9.1% and SoftBank Group is 5.6% higher, while Nissan Motor is down 5.0% and Honda Motor is 4.3% lower. Broader market index Topix is down 0.3% at 3946.03. The dollar is at 159.41 yen, compared with Y159.30 as of Friday's Tokyo stock market close. Investors are focusing on any developments in the Middle East and their implications for crude oil prices. The Nikkei Stock Average is 0.4% higher at 66611.29. (kosaku.narioka@wsj.com; @kosakunarioka)
2013 ET - JGBs fall in price terms in the morning Tokyo session amid signs the U.S.-Iran talks to end the conflict may be prolonged, which could sustain high crude oil prices and keep both Japan's inflationary pressures and BOJ rate-increase expectations elevated. President Trump said in a Fox News interview aired Saturday that the U.S. was "close to a very good deal," but suggested a potential return to fighting as an alternative. Iranian Parliament Speaker Mohammad Ghalibaf said Sunday there would be no deal unless Iran's rights were secured. The 10-year JGB yield rises 2.5 bps to 2.680%. (ronnie.harui@wsj.com)
1944 ET - Japanese stocks may remain rangebound amid uncertainty over a possible U.S.-Iran peace deal. Nikkei futures are down 0.1% at 66385 on the SGX. The dollar is at 159.38 yen, compared with Y159.30 as of Friday's Tokyo stock market close. Investors are focusing on any developments in the Middle East and their implications for energy prices. The Nikkei Stock Average rose 2.5% to 66329.50 on Friday. (kosaku.narioka@wsj.com)
1936 ET - The big story in Australia's 1Q GDP print will be data centers, says Westpac. It highlights the recent private capex survey, which showed investment in data centers almost doubled in 1Q. Expectations point to a further acceleration in data-center investment in FY27, Westpac says. "Some of this will be 'leaked' out via higher imports, but it will still provide a significant support to activity in the Australian economy," Westpac says. It forecasts 1Q GDP growth of 0.5%, moderating from 0.8% growth in 4Q of FY25. Significant headwinds from the conflict in the Middle East will only partly be reflected in 1Q. "We expect these impacts to intensify in 2Q 2026, with the possibility of a quarterly contraction," Westpac says. (david.winning@wsj.com; @dwinningWSJ)
1930 ET - Australian property's appeal as an investment has been dented by the federal government's tax changes, including to negative gearing. UBS assesses what asset classes could benefit as investors shop around for alternatives to residential homes. "Investors targeting growth assets with a bias for elevated leverage will now find greater appeal in replicating a negatively geared strategy in other asset classes which offer growth," strategist Nic Guesnon says. UBS think flows into fixed income and higher dividend yielding listed equities, including franking credits, should increase. Other structured financial products like annuities and insurance bonds, which offer a flat 30% tax rate, should also benefit, UBS says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 31, 2026 20:43 ET (00:43 GMT)
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