Yen Strengthens After Rare Intervention, Markets Wait for Earnings

The Japanese yen has strengthened against both the US dollar and euro, after a rare coordinated intervention in foreign exchange markets by officials in Tokyo and Washington. The currency is now about 4% stronger compared to levels that prompted official support last week.

An auction of 10-year Japanese government bonds on Tuesday drew weaker demand than the previous sale, prompting a fresh bout of jitters and a jump higher in yields.

Elsewhere, stocks drifted through the Asian trading session, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5%, while the Nikkei 225 slumped 0.3%.