The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
2136 ET - The ringgit should remain supported in the near term, but gains against the dollar are likely to be limited as prospects of higher U.S. interest rates continue to support the greenback, MUFG Bank senior currency analyst Lloyd Chan says in a note. The ringgit strengthened after Bank Negara Malaysia encouraged government-linked companies to bring home and convert overseas earnings into the local currency, he notes. However, Chan says the current environment differs from 2024, when markets expected U.S. rate cuts. With expectations now shifting toward higher-for-longer U.S. interest rates, external pressure on the ringgit is likely to persist despite domestic policy support, he adds. The dollar is down 0.4% at 4.1019 ringgit. (yingxian.wong@wsj.com)
2125 ET - Consumer inflation in the Tokyo metropolitan area picked up in June for the first time in eight months, but the result doesn't necessarily speed up the Bank of Japan's interest-rate hikes, says Daiichi Life Research Institute economist Takuya Hoshino. "While the data points to underlying price resilience, it is not currently strong enough to warrant immediate concern over an accelerating pass-through of costs to consumers, as noted by the BOJ," he says. "This is unlikely to prompt a front-loading of interest rate hikes," he adds. Tokyo consumer prices, excluding fresh food, rose 1.6% in June from a year earlier, compared with May's 1.3% increase. Tokyo figures are considered an early indicator of nationwide trends. (megumi.fujikawa@wsj.com)
2124 ET - Singapore's five-year sovereign bond sale on Friday is likely to draw fair demand, OCBC Group Research's Frances Cheung says in a research report. "A bond/swap spread at 5 bps or below is likely seen as supportive," the head of FX and Strategy says.Additionally, the issue will become the new 5-year benchmark, Cheung says. The Monetary Authority of Singapore is scheduled to auction 3.2 billion Singapore dollars of 5-year government debt, with the central bank planning to take S$300 million. (ronnie.harui@wsj.com)
2046 ET - Asian currencies consolidate against the dollar in early trade, but may be supported by diminished prospects of Fed rate hikes. New York Fed President Williams said overnight that current stance of monetary policy is well positioned to return inflation back to the Fed's 2% goal, CBA's Samara Hammoud notes. "Financial markets slightly reduced expectations for U.S. interest-rate hikes this year," the international economist and currency strategist says in a research report. The U.S. dollar is little changed at 161.79 yen and is flat at 6.8014 offshore yuan, while the Australian dollar edges 0.1% lower to US$0.6898, LSEG data show.(ronnie.harui@wsj.com)
2039 ET - Bitcoin rises in early Asian trade, as markets react to the latest U.S. PCE index, the Fed's preferred inflation gauge, coming in above target. Cryptocurrencies will likely stay range-bound until inflation cools meaningfully, Sygnum Bank analysts say. The sticky inflation reading is expected to keep the Fed on hold, raising the opportunity cost of holding a non-yielding asset like bitcoin, they say. The bank views the macro backdrop, rather than technical factors, as likely capping the upside of cryptos. "Recent ETF outflows look more like profit-taking and macro de-risking than a structural exist," its investment strategist Can-Luca Koymen adds. Bitcoin is last up 0.6% at $59,698.79.(jason.chau@wsj.com)
2033 ET - JGBs edge lower in price terms in morning Tokyo session on possible position adjustments by investors following Thursday's mild price gains. JGB prices may also be supported by BOJ's scheduled outright purchases today of four sectors of the market such as sovereign securities with tenors of more than 1 year and up to 3 years and those with tenors of more than 5 years and up to 10 years. The five-year JGB yield is up 1 bp at 1.890%; the 20-year yield is up 1 bp at 3.545%. (ronnie.harui@wsj.com)
2021 ET - Japanese stocks are lower in early trade on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Given the sustainability of earnings growth and current valuations in Japan, however, "AI and semi names are likely to remain the market's key driver," Citi Research's strategists say in a research report. "We maintain our view that the bull market will run into year-end," they add. Among the worst performers, Tokyo Electric Power is down 5.4%, TDK is down 4.5%, and Disco Corp. is 4.5% lower. The dollar is at 161.81 yen versus Y161.83 around Thursday's Tokyo stock market close. The Nikkei Stock Average is down 2.1% at 70832.18. (ronnie.harui@wsj.com)
1941 ET - Japanese stocks may fall on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Domestic tech equities may also be weighed by overnight decline in Nasdaq Composite as Micron Technology's blockbluster results failed to lift the broader tech sector. Nikkei futures are 785 points lower at 71615 on the SGX. The dollar is at 161.78 yen versus 161.83 yen around Thursday's Tokyo stock market close. The Nikkei Stock Average rose 4.6% to 72366.34 on Thursday. (ronnie.harui@wsj.com)Stride Property has an opportunity to get back in investors' good books, suggests Forsyth Barr. The stock is trading at a big discount to its book value. Analyst Rohan Koreman-Smit attributes that partly to the lack of a clear strategic pathway and weaker operational metrics from its office portfolio. "We believe the recent board refresh provides an opportunity for Stride to revisit its strategy and provide the market with clarity on the future direction of the business," Forsyth Barr says. Detail on the specific steps and initiatives that SPG is undertaking would lift market confidence in any strategic changes, it says. Medium-term outcomes against which to measure its progress would help. Forsyth Barr retains an outperform call on Stride, which is up 0.9% at NZ$1.13 today. (david.winning@wsj.com; @dwinningWSJ)
1710 ET - The Bank of Mexico confirms an end to its monetary easing cycle by leaving its benchmark interest rate at 6.5%, saying it expects the rate to stay there for the foreseeable future. Goldman Sachs expects the central bank to keep the rate unchanged for the rest of this year, but thinks that with its focus on growth the board of governors "could entertain additional rate cuts after the summer if growth remains weak, the MXN well-anchored, and the FOMC remains on hold," chief Latin America economist Alberto Ramos says in a note. If the Fed were to raise interest rates, the board "would likely face unfavorable policy trade-offs given the very tight Mexico-U.S. interest rate differential," he adds. (anthony.harrup@wsj.com)
1627 ET - The hydropower sector worldwide added 28 gigawatts in new capacity last year, including a record 11.7 GW from pumped-storage projects, according to the International Hydropower Association. Pumped-storage systems store water in reservoirs at different elevations, releasing water to generate electricity but catching it in downhill basins, then pumping it back up during periods of low power demand. The additions lifted the world's total pumped-storage capacity to 201 GW, surpassing 200 GW for the first time, the trade group says. China accounted for roughly 12.2 GW of total capacity additions last year and dominates the sector with more than 300 GW under construction, including a 217.5 GW of pumped storage alone, the IHA adds. In comparison, the U.S. added about 0.5 GW in hydropower capacity last year. (luis.garcia@wsj.com; @lhvgarcia)
1546 ET - Treasury yields decline as U.S. indicators suggest the Fed may not need to be as hawkish as priced in by the market. WSJ reports Iran attacks a Singapore-flagged cargo ship in the Strait of Hormuz. Oil prices rise 2%. May PCE annual inflation accelerates as expected, to 4.1%, while durable goods orders fall 4.5%. First-quarter GDP growth is revised higher, to 2.1%. Jobless claims fall more than expected in a week shortened by Juneteenth holiday. June University of Michigan consumers sentiment index is expected to increase, in a WSJ consensus. The WSJ Dollar Index falls 0.2%. The 10-year yield slips 0.008 percentage point to 4.391%. The two-year drops 0.016 p.p. to 4.120%. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
June 25, 2026 21:36 ET (01:36 GMT)
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