Japanese markets were the main movers as the week got underway. The Nikkei 225 rose alongside other regional equities, benefiting in particular from the earlier slide in the yen, which boosted exporters by making Japanese stocks cheaper in foreign-currency terms. Japanese government bond yields also edged higher, often read as a sign of stability concerns, but the move was largely shrugged off by markets today.

The yen later clawed back some ground, with USD/JPY retracing from early highs around 157.75 to lows near 157.25. JPY bids were helped by verbal intervention from Japan’s top currency diplomat, Atsushi Mimura. Mimura said that authorities are “concerned” about recent foreign-exchange moves, describing them as “one-sided and sharp,” and warned that officials would take “appropriate actions” against excessive volatility. The language was familiar, but the timing, so soon after last week’s central bank meeting, was enough to prompt some trimming of short-yen positions.

Elsewhere in FX, major pairs traded in relatively narrow ranges. Both the AUD and NZD ground out modest gains against the USD.

Oil prices found some early support after a renewed uptick in geopolitical risk. Over the weekend, the United States intercepted a Venezuelan oil tanker, while tensions between Israel and Iran remained elevated, the two news items together helping rebuild a modest risk premium in crude.

In US policy news, the Wall Street Journal reported on an interview/podcast with Cleveland Fed President Beth Hammack, who pushed back against recent dovish expectations. Hammack said she favours holding rates steady for several months and remains more concerned about inflation than labour-market weakness, adding that November’s CPI likely understated true inflation pressures.

Corporate chatter included an interesting social-media post from hedge fund manager Bill Ackman, who outlined a proposal for taking SpaceX public without Wall Street banks or IPO fees. The idea would give Tesla shareholders priority access to the deal, framing it as a more democratic alternative to a traditional IPO.

In commodities, spot silver surged 3% to a fresh record high above US$69, while gold prices also rose, pushing back toward US$4,400.

Wrap
Source: Investing Live