The Japanese yen strengthened roughly 1% against the dollar on Wednesday, marking its largest daily gain since the joint U.S.-Japanese currency intervention a month ago. The dollar-yen pair fell 1% to trade below 159.00, as the U.S. Treasury signaled discomfort with levels above 160.00 yen.
Global equities showed mixed performance, with Japanese stocks declining 3% while U.S. benchmarks edged higher. The S&P 500 and Nasdaq each rose about 0.5%, supported by gains in technology shares. Dell surged 16% following strong quarterly results, while Broadcom dropped 7% after its post-market release. European stocks were little changed.
Bond markets extended a rout, pushing Japanese and European yields to fresh multi-decade highs. The 10-year Japanese Government Bond yield climbed to 3.015%, while British gilt yields reached their highest level in nearly 20 years. The selloff in global debt markets reflected rising concerns over persistent inflation and monetary policy uncertainty.
Oil prices advanced 1% to a six-week high, extending gains that have pushed benchmark crude up 25% in less than a month and more than 40% year-on-year. The rally underscored tightening supply conditions amid geopolitical risks and robust demand.
Labor market data added to market caution. Private sector payrolls grew by 38,000 in August according to ADP, undershooting expectations. Earlier, the JOLTS report showed job openings rose by 89,000 in July while hiring fell by 278,000. Investors awaited Friday’s non-farm payrolls report for further clarity on U.S. employment trends.
Upcoming economic releases include August services PMIs for Japan, the euro zone, the UK, and the U.S., as well as the U.S. services ISM and weekly jobless claims.
