The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0221 GMT - Singaporeans' inflation expectations rose slightly, taking cues from global developments, such as the Middle East conflict, that could drive up prices, a survey shows. While fewer respondents in the quarterly survey expect inflation will rise over the next year, their expectations for the gain inched up to an average of 3.4% in June from 3.3% in the prior edition, an index by DBS and Singapore Management University shows. Global inflation is rebounding this year due to supply-side constraints of energy products and the demand-side pull from the artificial-intelligence boom, but Singapore's headline and core figures rose only modestly, which keep inflation expectations in check, says Taimur Baig, DBS's chief economist. (megan.cheah@wsj.com)
0217 GMT - Malaysia's exports growth may slow in 2H, as inventory restocking in the electrical and electronics sector eases, base effects fade and global trade normalizes, Kenanga IB analysts say in a note. They raise their 2026 export growth forecast to 19.0% from 9.7% following strong 1H trade data. GDP growth is expected to moderate in 2H as export momentum normalizes, while domestic demand should remain supportive, they add. Kenanga maintains its 2026 Malaysia GDP growth forecast at 4.5%-5.0%, with upside potential, if current momentum persists into 2H. (yingxian.wong@wsj.com)
0205 GMT - The Trump administration's announcement of an additional 50% duty on Canada, following the announcement of a levy on Brazil, could be a way to rebuild its tariff regime. Capital Economics' Stephen Brown notes the administration is resorting to a new method that cites Section 338 of the 1930 Tariff Act. That may be an attempt to see if Section 338--which some commentators suggest was superseded by subsequent legislation--could be used to impose duties on other countries in the future, the economist says. If so, that could help the administration regain some of the flexibility it lost when the Supreme Court struck down prior tariffs, though Brown notes considerable uncertainty about whether it will follow through with new duties and if those will be upheld by the courts. (fabiana.negrinochoa@wsj.com)
0155 GMT - Malaysia's trade growth is expected to moderate in 2H after a strong 1H, TA Securities analyst Farid Burhanuddin says in a note. Export demand should remain supported by an electrical and electronics upward cycle and steady global demand, but a stronger ringgit, geopolitical tensions and uncertainty over U.S. trade policy could weigh on momentum, he says. Some of the recent export strength may also have reflected front-loading ahead of potential tariff changes, he reckons. However, Malaysia's diversified export base and continued supply-chain relocation are expected to cushion external risks, allowing trade to continue to support the country's economic growth and external balances, albeit at a slower pace, he adds. (yingxian.wong@wsj.com)
0154 GMT - A resolution to the Middle East conflict still looks reasonable, MUFG Bank's Michael Wan says in a research report. "Latest indications are that there continues to be talks and discussions happening in the background including through mediators," the senior currency analyst notes. With the U.S. mid-term elections coming up, coupled with the lack of munitions by the U.S. military, oil prices may not revisit the highs seen earlier in the conflict. Wan says. "If this assumption is right, this implies some space for Asian currencies including oil-sensitive currencies INR and PHP to do somewhat better from here," Wan adds. The dollar is little changed at 61.672 pesos and is 0.1% higher at 33.65 baht, LSEG data show. (ronnie.harui@wsj.com)
0046 GMT - The signals from New Zealand's 2Q underlying inflation data were mixed and shouldn't move the dial much for the Reserve Bank of New Zealand, says Miles Workman, senior economist at ANZ. The trimmed mean and weighted median measures accelerated, but the ex-fuel and energy measure slowed, and services inflation cooled meaningfully, he notes. Still, while 2Q should mark the peak in inflation, fuel prices are currently rising again and the RBNZ is unlikely to stop worrying about potential spillover effects any time soon, he adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
0023 GMT - New Zealand's still-contained underlying inflation gives RBNZ some breathing room, Capital Economics' Abhijit Surya says in commentary. Data released earlier showed the "pickup in price pressures last quarter was not particularly broad-based, with measures of core inflation still well behaved," the senior APAC economist says. Overall, the inflation readings "won't instil a sense of urgency in the RBNZ to deliver back-to-back hikes as financial markets are expecting," Surya says. Capital Economics' base case continues to be for RBNZ to wait until October to raise rates. Also, Capital Economics still sees RBNZ's tightening cycle will be relatively shallow, with Official Cash Rate peaking at 3.25% in mid-2027. (ronnie.harui@wsj.com)
0022 GMT - Asian currencies consolidate against the dollar as traders weigh mixed signals over the U.S.-Iran conflict. On the one hand, American forces started a new round of strikes against Iran at the Commander-in-Chief's direction, U.S. Central Command said in a post on social-media platform X. On the other hand, however, mediators were working Monday to push the U.S. and Iran into a new ceasefire. The U.S. dollar is little changed at 162.47 yen and is 0.1% higher at 1,477.50 won, while the Australian dollar is 0.1% higher at US$0.6999, LSEG data show. (ronnie.harui@wsj.com)
0020 GMT - New Zealand inflation hit a two-year high in 2Q, in line with expectations, but the outcome is overwhelmingly an imported-energy story, says Sunny Nguyen, economist, Moody's Analytics. Beneath the spike, the domestic picture is more encouraging than the headline suggests, she adds. Non-tradable inflation eased to 3.4%, and core measures excluding food and energy held at 2.5%, showing little sign that the fuel shock is bleeding into other prices, Nguyen adds. The data affords patience for the Reserve Bank of New Zealand, she says.(james.glynn@wsj.com; X @JamesGlynnWSJ)
0016 GMT - Japanese stocks are higher in early trade, following recent selloffs in technology stocks. Energy companies and trading houses are leading the gains, partly due to expectations for higher oil prices amid the Iran conflict. Inpex is up 2.8% and Mitsubishi Corp. is 1.7% higher. The dollar is at 162.47 yen, compared with Y162.49 as of Monday 5 p.m. Eastern time. Investors are tracking developments in the Middle East after the U.S. military said Monday it launched a new round of strikes intended to further degrade Iran's ability to attack commercial shipping in the Strait of Hormuz. The Nikkei Stock Average is up 0.4% at 64371.34. (kosaku.narioka@wsj.com; @kosakunarioka)
0009 GMT - JGBs fall in the early Tokyo session, tracking overnight price declines in U.S. Treasurys. Both JGBs and Treasurys tend to move in tandem. JGB prices are also likely to be weighed by the recent rise in crude oil prices, which could lead to higher inflation in Japan and a quicker pace of BOJ rate increases. Meanwhile, ongoing net supply of JGBs remains high and Japanese economy is robust overall, Citi Research's Tomohisa Fujiki says in a recent research report. "We see no particular reason to aggressively buy bonds," the rates strategist adds. Ten-year JGB yield rises 2 bps to 2.725%. (ronnie.harui@wsj.com)
2348 GMT - Japanese stocks may rise following recent selloffs in technology stocks. Nikkei futures open at 65155 on the SGX, up 340 points from Monday and up 1170 points from Friday. Japanese markets were closed Monday for a national holiday. The dollar is at 162.50 yen, compared with Y162.34 as of Friday's Tokyo stock market close. Investors are focusing on developments in the Middle East after the U.S. military said Monday it launched a new round of strikes intended to further degrade Iran's ability to attack commercial shipping in the Strait of Hormuz. The Nikkei Stock Average fell 4.0% to 64141.12 on Friday. (kosaku.narioka@wsj.com)
(END) Dow Jones Newswires
July 20, 2026 22:21 ET (02:21 GMT)
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