Yen Advances to Six-Month High, Crude Oil Climbs: Markets Wrap
(Bloomberg) — The yen extended Monday’s rally to reach the strongest level since February, aided by rising expectations of a Bank of Japan interest-rate increase next week. Oil gained.
Japan’s currency rose as much as 1% to 152.89 per dollar after appreciating 1.2% on Monday. The latest advance suggests the currency’s rally — set in motion by an intervention push from Treasury Secretary Scott Bessent and Finance Minister Satsuki Katayama — may be taking on a life of its own.
Oil extended Monday’s advance 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 rose 1% to $97.46 per barrel.
Asian stocks were mostly lower, led by Japan and Australia. The MSCI Asia Pacific Index of regional shares slipped 0.4%. Futures for the S&P 500 Index also declined, while those for European shares were little changed.
Global stocks may now be poised for a period of consolidation as rising oil prices put 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,” she 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 US inflation report, which may prove pivotal to whether the Federal Reserve raises interest rates or stays on hold.
The yen’s latest rally means it has now strengthened more than 4% versus the dollar this month, the best performer among Group-of-10 currencies.
Japan’s stance on currencies hasn’t shifted since it conducted joint intervention with its US counterparts, and authorities will work to maintain orderly markets, Finance Minister Katayama said at a briefing on Tuesday. She added that she will continue to maintain close contact with her counterpart at the US Treasury, Scott Bessent.
Japan’s economy grew at a faster pace in the second quarter than initially estimated, a government report showed Tuesday. Wages, meanwhile, jumped the most in nearly three decades in July, supporting the case for a widely expected BOJ interest-rate hike at its Sept. 18 meeting.
Elsewhere, the Bloomberg dollar index slipped 0.1%, while the US Treasury 10-year yield was little changed at 4.79%. Gold rose 0.4% to $4,420 per ounce as the weaker dollar made bullion priced in the US currency more competitive.
Copper extended gains, hitting a record high for a second straight session, as tight near-term supplies and expectations the US will tariff imports of refined metal buoyed prices. The industrial metal rose for a fourth day on the London Metal Exchange, touching an all-time peak of $14,617 a ton.
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,” JPMorgan Chase & Co. strategists led by Mislav Matejka wrote in a client note. “We believe one should continue using the dips to add.”
Corporate News:
Anthropic PBC has decided against acquiring artificial intelligence startup Decart AI, people familiar with the matter said. Renault SA is set to start sales of its overhauled electric Dacia Spring, which will be assembled in Europe to qualify for incentives favoring local production. 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 fell 0.2% as of 6:55 a.m. London time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average fell 0.8% The MSCI Asia Pacific Index fell 0.4% The MSCI Emerging Markets Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1629 The Japanese yen rose 0.5% to 153.52 per dollar The offshore yuan was little changed at 6.7100 per dollar The British pound was little changed at $1.3540 Cryptocurrencies
Bitcoin fell 0.8% to $78,587.7 Ether fell 0.9% to $2,472.99 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.79% Germany’s 10-year yield advanced five basis points to 3.39% Britain’s 10-year yield advanced four basis points to 5.18% Commodities
Brent crude rose 1.4% to $98.37 a barrel Spot gold rose 0.4% to $4,420.01 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi.
©2026 Bloomberg L.P.
