Asian Markets Eye US Jobs Data and Iran as Yen Strengthens
The Asian markets have seen cautious equity gains as investors look ahead to key events over the weekend. The US jobs data, Iran's situation, and the yen are focal points for market participants.
US Fed Governor Waller's dovish comment on Wednesday has driven a collapse in expectations of a September rate hike. He stated that he is open to keeping the policy rate in the 3.50-3.75% range due to signs of 'disinflation.'
The Japanese government confirmed its FY27/28 budget requests will be a fresh record high of ¥143T, with Finance Minister Katayama saying she will not be replaced in the cabinet reshuffle. This may suggest continuity and predictability in Prime Minister Takaichi's fiscal strategy.
In China, the yuan has strengthened to its strongest level since February 8th, 2023, at 6.7787 against the dollar. The People's Bank of China conducted no 7-day reverse-repo injections, resulting in a net drain of CNY20 billion.