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The Asia–Pacific session is unfolding in a moderately cautious mood. Chinese indices are down between 0.70% and 1.10%, Japan’s JP225 is lower by 0.80%, while Australia’s AU200.cash gains 0.20% and Singapore’s SG20cash rises 0.25%.
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In the FX market, the only notable mover is the Japanese yen, which is weakening by 0.50–0.70% against the rest of the major currencies. USDJPY is up 0.55% at 158.9000.
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The Japanese yen has come under strong pressure again following reports that Prime Minister Sanae Takaichi is preparing to dissolve the lower house of parliament as early as the start of the legislative session on January 23. This would pave the way for snap elections, potentially on February 8 or 15. USDJPY climbed to 159.9500, marking the yen’s weakest level since July 2024.
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The declines are only partially offset by short-lived verbal interventions from Finance Minister Satsuki Katayama, who raised the issue with US Treasury Secretary Scott Bessent.
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Japanese authorities appear to be focusing less on specific exchange-rate levels and more on preventing speculative moves, which for now keeps the risk of direct FX market intervention relatively low.
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Fitch Ratings emphasized that the independence of the Federal Reserve remains a key pillar supporting the US AA+ credit rating, describing it as a critical institutional safeguard.
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President Donald Trump announced the immediate imposition of a 25% tariff on any country doing business with Iran. Speculation is now focused on whether these threats will extend to China, one of Iran’s largest trading partners.
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New York Fed President John Williams said that monetary policy is close to neutral and well positioned, with no urgent need for further rate cuts. He expects inflation to return to 2% by 2027 and defended the current policy framework and the Fed’s independence.
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In the cryptocurrency market, a rebound is underway. Bitcoin is up 0.90% to USD 91,900, Ethereum gains 1.11% to USD 3,111, and the broader altcoin market rises 0.50% to a total capitalization of USD 880 billion.
Daily summary: Weak US data drags markets down, precious metals under pressure again!
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