Major Asian indices fluctuated on Tuesday as the USD/JPY surged past 152.00, while the ASX200 and SHCOMP edged lower. AUD/USD dipped below 0.6550 amid shifting risk sentiment and rising U.S. Treasury yields.
- USD/JPY rose above 152.00, driven by U.S. yield gains and persistent BoJ dovishness
- ASX200 declined 0.3% to 8,312.4, led by losses in materials and financial sectors
- SHCOMP closed flat at 3,014.6, with energy stocks up 1.2% on stable crude prices near $78
- AUD/USD fell to 0.6547, indicating cautious sentiment ahead of U.S. inflation reports
- U.S. 10-year Treasury yield increased to 4.82%, reinforcing dollar strength
- Market focus remains on Fed-BoJ policy divergence and upcoming economic data
Asian markets opened with cautious momentum Tuesday, as the U.S. dollar strengthened sharply against the Japanese yen, pushing USD/JPY above 152.00 for the first time since October 2024. The rally was fueled by renewed expectations of prolonged U.S. Federal Reserve rate hold, with 10-year Treasury yields climbing to 4.82%, reinforcing dollar demand. In equity markets, the ASX200 closed 0.3% lower at 8,312.4, pressured by losses in materials and financials, particularly iron ore miners facing weak Chinese demand. The Shanghai Composite (SHCOMP) ended flat at 3,014.6, with energy stocks gaining 1.2% as crude oil prices stabilized near $78 per barrel. The Australian dollar weakened to 0.6547 against the greenback, marking a 0.6% decline on the day, as risk appetite cooled ahead of the week’s U.S. inflation data. Investors remain focused on central bank divergence between the Fed and the Bank of Japan, with Japanese policymakers signaling no immediate shift in monetary policy despite the yen’s ongoing depreciation.