- Asia shares mixed as Nikkei heads for worst week in a month on oil fears
- China vice finance minister signals more fiscal support as economy slows
- USD slammed in Asia Friday: Bitcoin, gold, FX surge as investors hedge against US fiscal credibility concerns
- Goldman veteran Currie ties gold rally to debasement as commodities capture scarcity premium
- PBOC sets USD/ CNY reference rate for today at 6.7817 (vs. estimate at 6.7262)
- Bitcoin price forecasts for year 2027
- Flash PMI shows Japan factories leading strongest growth since February
- Once the world’s top gold buyer, Russia’s central bank now a steady seller
- BOJ seen hiking to 1.25% in September as Japan inflation pressures broaden
- Iran plans oil strikes to hurt Trump before midterms, official says
- Japan July Core CPI 1.8% y/y (expected 1.8%)
- Iran “in bad shape,” Trump says, citing weapon production collapse
- UK consumer confidence hits two year high despite inflation warning
- Australia private sector growth softens as cost pressures intensify in August
- New Zealand July trade balance NZ$-1.95 billion (prior 23mn)
- Panama Canal caps daily transits as El Niño threatens water levels
- Citi says debasement trade needs new outlet, pointing markets back to gold
- South Korea producer prices fall for first time in 11 months on cheaper oil that month
- Fed’s Daly, Musalem united on credibility concerns as bond selloff persists, but split on policy
- Preview: Japan core CPI seen hitting six month high, lifting bets on BoJ September hike
- Wall Street slides as Treasury yields, Walmart miss, and ongoing war hit stocks
- investingLive Americas news wrap: Bessent doubles down on buyback plan
Summary:
- Trump told WABC Radio that Iran’s capacity to produce missiles and drones has fallen sharply, calling Iran “in bad shape” with roughly 300% inflation and a near valueless currency, while reaffirming Tehran will not be allowed a nuclear weapon
- A senior Iranian official said Tehran is preparing an economic warfare campaign targeting Gulf oil bypass terminals and the Strait of Hormuz shadow fleet, aimed at driving up US pump prices ahead of the November midterms
- Oil prices held near recent highs in steady trade
- Japan’s July core CPI rose 1.8% year on year, adding to the case for a Bank of Japan rate hike at its September meeting
- USD/JPY straddled the 159.00 level, with the yen losing ground against other major crosses even as it held broadly steady versus the dollar
- The euro, sterling, New Zealand dollar and Australian dollar all traded higher against the dollar, near their strongest levels in recent months
- Bitcoin surged, gold held near highs
- Japan’s Nikkei was on track for its worst week in more than a month, down around 4%, while Topix was set for a weekly decline of roughly 3.5%
- South Korea’s KOSPI reversed early losses to trade higher on chipmaker strength, though it remained on track for a weekly decline of around 1%
- China’s Vice Finance Minister Liao Min pledged additional fiscal policy support in a timely manner as the economy shows signs of a broader slowdown
- The Panama Canal Authority will cap daily vessel transits from early September as it braces for a severe El Niño season
President Trump added to the week’s Iran headlines on Thursday, telling WABC Radio that Tehran’s capacity to produce missiles and drones has fallen sharply compared with five months ago. He described Iran as being in bad shape, citing inflation running near 300 percent and a currency he called virtually valueless, while reiterating that Iran will not be permitted to obtain a nuclear weapon. The comments came alongside a separate report that a senior Iranian official is preparing an economic warfare strategy of its own, aimed at using oil markets to pressure Trump ahead of November’s midterm elections. The plan reportedly includes strikes on Gulf bypass terminals in Saudi Arabia and the UAE, along with efforts to shut down the flow of oil moving through the Strait of Hormuz via the US backed shadow fleet, with the explicit aim of pushing pump prices higher before the vote. Against that backdrop, oil prices held near recent highs in otherwise steady trade.
In Japan, data released Friday showed core consumer inflation rose 1.8 percent in July from a year earlier, matching forecasts and adding to the case for the Bank of Japan to raise rates at its September policy meeting. The yen struggled to gain traction on the back of the data, with USD/JPY straddling the 159.00 level, though the currency lost more ground against other major crosses than it did against the dollar itself. Elsewhere in currency markets, the euro, sterling, the New Zealand dollar and the Australian dollar all traded higher against the greenback, with several sitting near their strongest levels in recent months as investors continued to question the durability of the US Treasury’s efforts to manage bond yields.
Regional equities were mixed. Japan’s Nikkei was on track for its worst week in more than a month, down around 4 percent, as rising oil prices and elevated bond yields weighed on sentiment amid the escalating Middle East standoff. The broader Topix was set for a weekly decline of roughly 3.5 percent. South Korea’s KOSPI told a different story intraday, opening sharply lower before reversing to trade higher as chipmakers tracked overnight gains among US peers, though the index remained on course for a weekly loss of around 1 percent.
On the policy front, China’s Vice Finance Minister Liao Min said Beijing will introduce additional fiscal support in a timely manner, pledging to maintain policy continuity while allocating resources over a longer cycle, as the world’s second largest economy shows signs of a broadening slowdown. Separately, the Panama Canal Authority said it will cap daily vessel transits from early September, reversing an earlier pledge not to restrict passage, as it prepares for what it expects to be a longer and more severe El Niño season than in past years.
This article was written by Eamonn Sheridan at investinglive.com.