Japan’s exports continued to rise in June, led by semiconductor-related demand, but the outlook appears to be clouded by uncertainties over the global economy.
Most JGBs fell in the early Tokyo session on the prospect of Bank of Japan policy tightening via a reduction in its JGB purchases and a rate hike at its end-July meeting.
Oil rose in early Asian trade. Inventory decline, geopolitical tensions in the Middle East, solid seasonal demand and late-summer Fed rate-cut expectations have been catalysts for higher crude prices, TD Securities said,
JPY strengthened against other G-10 and Asian currencies in early trade on possible unwinding of carry trades, which is a strategy involving the borrowing of a low-yielding currency like JPY to buy a high-yielding currency such as USD.
