Macro update
Wall Street rebounds: US stocks broke a three-session losing streak overnight, with the Dow, S&P 500 and Nasdaq 100 gaining around half a percentage point, led by a 3.2% jump in Nvidia and a 15.8% surge in Dell after it raised its full-year forecasts.
Central banks remain in focus: Asian shares and bonds staged a relief rally as investors awaited Friday’s US payrolls report and further central bank commentary, with markets now pricing a 61% chance of a September Federal Reserve rate hike, up from 37% a week ago.
Yen strengthens to a three-week high: The Japanese currency climbed 0.67% to ¥157.64 per dollar, its strongest level since August 10, after hawkish comments from BOJ board member Hajime Takata boosted expectations of faster rate increases.
Bond yields retreat from record highs: Japanese government bond yields fell sharply alongside a recovery in Treasuries, with the 30-year JGB yield dropping 8 basis points to 4.085% after strong demand at a debt auction, while the US 10-year yield eased to 4.776%.
Oil prices edge lower as tensions ease: Brent crude slipped around 0.5% to $95 a barrel and WTI fell to around $90.50 as tentative signs of de-escalation in the latest US-Iran flare-up offset supply concerns, with President Trump saying the campaign would not last “too long”.
Gold rises on renewed safe-haven demand: Spot gold climbed over 1% to $4,435 an ounce, while silver gained 1.3% to $66.17 as investors sought protection from Middle East tensions and renewed concerns over the inflation outlook.
