Asian Markets Rise Before US Jobs Report, Fed Comments Ease Rate-Hike Fears Asian equities moved higher on Friday as investors positioned themselves ahead of the crucial US August jobs report. The biggest shift came from Federal Reserve Governor Christopher Waller, whose comments reduced fears of an imminent US interest-rate hike and helped bonds recover, the US dollar weaken and the Japanese yen strengthen. 30-Second Market Snapshot 🇯🇵 Nikkei: +0.8% 🇨🇳 China blue chips: +1.0% 🇰🇷 Kospi: +1.1% 🌏 MSCI Asia ex-Japan: +1.0% 💵 US Dollar Index: 98.96 🇯🇵 USD/JPY: around 155.7 🥇 Gold: around US$4,470/oz 🛢️ Brent crude: around US$95.52/barrel 🇺🇸 US 2-Year Treasury Yield: 4.34% 🇺🇸 US 10-Year Treasury Yield: 4.76% Big Story Today Markets are becoming slightly less convinced that the Federal Reserve will raise interest rates in September. Fed Governor Christopher W...
Rakuten Trade has flagged a looming global “perfect storm” and trimmed its end-2026 target for the FBM KLCI to 1,770 from 1,800, citing rising macro risks that could unsettle markets. The “Deadly Triangle” Shaping Markets At the core of the concern is a “deadly love triangle” : High global debt levels Lower interest rate pressure Weakening US dollar trend The US debt has surpassed US$39 trillion , with annual interest costs nearing US$1.2 trillion , limiting policy flexibility. Key implication: Central banks, especially the Federal Reserve , may lean toward rate cuts , which could weaken the US dollar and distort global capital flows. Rising Yields Add Another Layer of Risk Japan is emerging as a critical pressure point: 10-year bond yields at ~2.8% (highest since 1997) Risk of yen carry trade unwinding This could trigger global liquidity tightening , amplifying volatility across equities and...