Yen Advances to Six-Month High, Chip Stocks Rise: Markets Wrap
(Bloomberg) — The yen extended Monday’s advance to reach the strongest level since February, aided by rising expectations of a Bank of Japan interest-rate increase next week. Gains in South Korean chip stocks helped support Asian equities.
Japan’s currency rose 0.6% to 153.46 per dollar after rallying 1.2% on Monday. The yen was also boosted by speculation over a potential shift in the Government Pension Investment Fund’s asset allocation, while some traders pointed to thin liquidity during Monday’s US holiday as enabling its advance.
The MSCI Asia Pacific Index of regional equities climbed 0.2% with Korea’s Kospi Index gaining 1.4%, buoyed by gains in SK Hynix Inc. and Samsung Electronics Co. Japan’s Nikkei 225 Stock Average ticked up 0.1%, while Australian shares fell. Futures on the tech-heavy Nasdaq 100 Index rose 0.3%.
Oil held Monday’s gains to trade near $97 a barrel as traders watched for details of an Iranian deal with Oman to manage shipping through the Strait of Hormuz, while strong Chinese buying tightened the market. Global benchmark Brent crude had risen 1.6% over the previous two days, while West Texas Intermediate was above $92.
Global stocks may now be poised for a period of consolidation as rising oil prices puts pressure on central banks to raise interest rates, said Anastasia Amoroso, chief investment strategist at Partners Group.
“We are likely to be in some sort of period of digestion because we are going through a pretty meaningful adjustment in terms of central bank policy around the world,” Amoroso said in an interview on Bloomberg Television. “We are in this tightening mode with central banks around the world. So we might give a little bit of those gains back or at least some consolidation here.”
Higher energy prices are adding to inflation concerns as investors weigh the prospect of tighter monetary policy. A packed week of US data culminates with Friday’s inflation report, which may prove pivotal to whether the Federal Reserve raises interest rates or stays on hold.
The yen has risen about 4% this month, making it the best performer among Group-of-10 currencies.
The latest advance suggests the currency’s rally set in motion by the intervention push from Treasury Secretary Scott Bessent and Finance Minister Satsuki Katayama may be gaining a life of its own. Expectations for tighter BOJ policy have provided a more fundamental source of support, while the break through 155 is now adding technical momentum.
In commodities, copper surged to a record on the London Metal Exchange, extending a weeks-long rally driven by expectations that President Donald Trump will broaden US tariffs to imports of refined metal. Gold advanced in early Tuesday trading.
While US economic data will likely provide the biggest catalyst for markets this week, earnings will also help shape the outlook for key equity sectors. Results from Oracle Corp. and Adobe Inc. on Thursday will offer a fresh read on AI infrastructure spending and the threat the technology poses to software makers.
“As corporate profits remain on an uptrend, any bout of weakness in equity prices would leave them cheaper,” wrote JPMorgan Chase & Co. strategists, led by Mislav Matejka. “We believe one should continue using the dips to add.”
Corporate News:
Novo Nordisk A/S stopped two more trials for its experimental heart disease medicine, in a further blow to the drug’s prospects. Abu Dhabi National Oil Co. is in talks with the biggest refining companies in Thailand and Africa to invest in their businesses. Uber Technologies Inc. has hired banks to hold calls with investors this week for a debut euro bond sale. Jaguar Land Rover Automotive Plc will slash some 4,000 jobs as Britain’s largest carmaker grapples with US tariffs, the fallout of a crippling cyberattack and intense competition. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 10:42 a.m. Tokyo time Nikkei 225 futures (OSE) rose 0.1% Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 fell 0.6% Hong Kong’s Hang Seng fell 0.7% The Shanghai Composite rose 0.3% Euro Stoxx 50 futures were little changed Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro was little changed at $1.1630 The Japanese yen rose 0.5% to 153.57 per dollar The offshore yuan was little changed at 6.7094 per dollar Cryptocurrencies
Bitcoin was little changed at $79,297.23 Ether rose 0.2% to $2,498.97 Bonds
The yield on 10-year Treasuries was little changed at 4.78% Japan’s 10-year yield declined four basis points to 2.890% Australia’s 10-year yield declined one basis point to 5.18% Commodities
West Texas Intermediate crude rose 1.1% to $92.52 a barrel Spot gold rose 0.7% to $4,434.21 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi.
©2026 Bloomberg L.P.
