The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0237 GMT - The yen strengthens against most other G-10 and Asian currencies in early Tokyo trade on prospects of more inflows into Japanese assets. Japanese Finance Minister Katayama said earlier Friday: "We are looking to pursue measures to encourage pension funds, including the GPIF, to make further investments in Japanese financial assets." The dollar falls 0.5% to 161.49 yen, the euro drops 0.3% to 185.03 yen, and the Australian dollar sheds 0.2% to 112.33 yen, LSEG data show.(ronnie.harui@wsj.com)
0224 GMT - Japan's Prime Minister Sanae Takaichi might need to consider more careful, market-conscious communication on highly sensitive issues, says Mizuho Securities economist Yusuke Matsuo. Among the topics are funding for planned consumption-tax cuts on food and her massive investment program, Matsuo says. Japanese government bond yields spiked recently due to concerns that political pressures would delay the Bank of Japan's interest-rate hikes and heighten inflationary risks. Finance Minister Satsuki Katayama on Friday emphasized the central bank's independence, saying specific monetary-policy measures are up to the BOJ to decide. The 10-year JGB yield was last down 10 basis points at 2.775%. (megumi.fujikawa@wsj.com)
0152 GMT - Japan's producer prices are expected to rise by more than 5% year-over-year, with crude oil and petroleum product costs likely to remain high for the time being, says Daiwa Securities economist Yutaro Suzuki. Corporate goods prices rose 7.1% in June from a year earlier, Bank of Japan data showed Friday. "While the recent resurgence of tensions in the Middle East requires vigilance, crude oil prices are expected to gradually decline over the longer term as the situation in the region improves," Suzuki says. "The corporate goods price index is also likely to ease moderately toward the end of the year," he adds. (megumi.fujikawa@wsj.com)
0127 GMT - Indonesian rupiah's balance of risks remain tilted toward further weakness, MUFG Bank's Lloyd Chan says in a research report. "Renewed geopolitical tensions in the Middle East and elevated U.S. yields continue to exert external pressure on the rupiah," the senior currency analyst says. Although high Indonesian government bond yields have helped to lure foreign inflows into debt market, Indonesia continues to face persistent net foreign equity outflows, Chan says. "Adding to concerns, S&P Dow Jones Indices warned that Indonesia could lose its emerging market status if concerns over its equity market persist," the analyst adds. The dollar closed 0.4% higher at 18,070 rupiah on Thursday, LSEG data show. (ronnie.harui@wsj.com)
0109 GMT - Gold's rally is likely limited by some headwinds, HSBC Global Investment Research's James Steel says in a research report. Fed rate-increase prospects still could limit any rallies, though these expectations have been mostly factored in, the chief precious metals analyst says. Also, a strong U.S. dollar could "put up considerable headwinds to rallies," Steel says. However, "heavy liquidation may partially reverse as structural factors aiding gold pre-[Mideast] conflict resume and its safe haven and portfolio diversification properties attract buyers," the analyst adds. HSBC retains a "positive posture" on gold, but lowers its average gold-price forecasts for 2026 to $4,560 per ounce from $4,864 an ounce, and for 2027 to $4,925 per ounce from $5,000 an ounce. Spot gold edges 0.1% lower to $4,120.04 per ounce. (ronnie.harui@wsj.com)
0054 GMT - Bitcoin falls 0.4% in early Asian trade to $63,028.72. Macro conditions for the cryptocurrency are improving as energy supplies from the Gulf slowly recover, though uncertainty remains elevated given the fragile U.S.-Iran ceasefire, says Can-Luca Koymen of Sygnum Bank. Koymen also sees some long-term holders returning to net accumulation, while large investors are buying into recent weakness. However, sustained price support will likely require bitcoin ETF flows to turn positive and the Fed to begin easing rates, Sygnum says. (jason.chau@wsj.com)
0043 GMT - Asian currencies consolidate against the dollar in early trade, but may be supported by risk-on sentiment. The markets have shrugged off Middle East tensions as oil prices reversed lower, two strategists at OCBC Group Research say in a research report. This has eased inflation fears, the strategists say. The greenback "traded modestly softer [overnight], likely reflecting the improvement in broader risk sentiment," the strategists add. The U.S. dollar is little changed at 162.35 yen, and is flat at 1.2922 Singapore dollars, according to LSEG data. (ronnie.harui@wsj.com)
0029 GMT - JGBs edge higher in morning Tokyo session, tracking overnight price gains in U.S. Treasurys. Both JGBs and Treasurys tend to move in tandem. JGB prices may also be buoyed by the latest decline in crude oil prices, which could lead to lower inflationary pressures in Japan and ease concerns over a rapid pace of BOJ rate increases. The 10-year JGB yield is 1 bp lower at 2.865%; the 20-year yield falls 1.5 bps to 3.850%. (ronnie.harui@wsj.com)
0020 GMT - Japanese stocks are higher in early trade, tracking Wall Street's gains overnight. "Risk appetite has gained with lower oil prices helping to drive a rise in equities," InTouch Capital Markets' analysts' team says in commentary. "One read on the price action is that markets are growing accustomed to a sustained low-level conflict between the" U.S. and Iran, the team adds. Among best performers on the benchmark index, Fujikura rises 5.2%, Yaskawa Electric adds 4.9%, and Mitsui Kinzoku advances 4.7%. The dollar is at 162.39 yen, compared with Y162.38 late Thursday in New York. The Nikkei Stock Average is up 1.5% at 68770.27.(ronnie.harui@wsj.com)
2341 GMT - Japanese stocks may rise, tracking Wall Street's gains overnight. Concerns over a return to a full-blown conflict between the U.S. and Iran appear to have subsided, spurring investors' appetite for risky assets. Nikkei futures open 1100 points higher at 69000 on the SGX. The dollar is at 162.36 yen, compared with 162.38 yen late Thursday in New York. The Nikkei Stock Average closed 1.4% higher at 67743.85 on Thursday. (ronnie.harui@wsj.com)
2301 GMT - U.K. retail sales slid in June due to high temperatures, which kept many shoppers indoors, according to a report published Friday. Total footfall in the U.K. fell by 3.4% on year during the five weeks from May 31 to July 5, the latest report from the British Retail Consortium and retail technology company Sensormatic shows. "High streets saw the sharpest declines, while air-conditioned shopping centers and retail parks proved more resilient," BRC Chief Executive Helen Dickinson says. Coupled with the heat wave, consumer confidence remains low, with wider geopolitical and economic uncertainty continuing to weigh on discretionary spend, the report says. (andrea.figueras@wsj.com)
1407 GMT - Businesses in Germany have signaled an intention to scale back employee numbers amid low growth expectations and an elevated inflation outlook, according to S&P Global's Business Outlook survey for June. The net balance of firms expecting an increase in business activity fell to the lowest since October 2024, while plans for jobs cuts have risen to their highest level ever outside of the pandemic, S&P says. "The war in the Middle East has taken a toll on Germany's near-term growth prospects and put paid to some of the burgeoning optimism seen at the turn of the year." The manufacturing sector noted a particular focus on improving productivity to offset high costs and rising competition from abroad, S&P says. (don.forbes@wsj.com)
(END) Dow Jones Newswires
July 09, 2026 22:37 ET (02:37 GMT)
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