Asian stock indices posted modest gains Tuesday as the Japanese yen weakened past the 159 level against the U.S. dollar, signaling continued pressure on Japan’s monetary policy outlook. The movement coincided with heightened speculation over potential intervention by Japanese authorities.
- Japanese yen weakened to 159.37 per U.S. dollar, its lowest since early 2024
- Nikkei 225 rose 0.6%, KOSPI gained 0.9%, ASX 200 climbed 0.7%
- MSCI Asia Pacific Index advanced 0.4% amid sector-led gains
- U.S. 10-year Treasury yield reached 4.68%, increasing global asset flow pressure
- Market speculation intensified over possible Japanese government currency intervention
- Export-driven sectors in South Korea and Australia led regional equity gains
Major Asian equity indices ended Tuesday with slight upward momentum, led by gains in South Korea and Australia, while Japan’s Nikkei 225 rose 0.6% amid volatility in currency markets. The Japanese yen slipped to 159.37 per U.S. dollar—the first time it breached 159 since early 2024—reflecting persistent demand for dollar-denominated assets and concerns over diverging central bank policies. The yen’s depreciation intensified after the Bank of Japan maintained its ultra-low interest rate stance, signaling no immediate shift in its accommodative monetary policy. The weakening yen has sparked renewed debate about possible government intervention. Japan’s Ministry of Finance has previously stepped in to stabilize the currency, and market participants are closely monitoring for any signs of direct action. In addition to currency movements, the MSCI Asia Pacific Index gained 0.4%, supported by stronger performances in semiconductor and export-oriented sectors. South Korea’s KOSPI climbed 0.9%, fueled by gains in tech stocks, while Australia’s ASX 200 rose 0.7%, led by mining and financial firms. On the macroeconomic front, rising U.S. Treasury yields—10-year notes climbed to 4.68%—contributed to regional market caution. Higher U.S. yields increased the appeal of dollar assets, exerting downward pressure on Asian currencies and equity valuations. The euro remained relatively stable at $1.085, while the Australian dollar edged to $0.653, reflecting broader risk sentiment shifts.