In international financial markets on the morning of 4 September, the yen maintained its upward trend against the US dollar, while gold was stable at around $4,475 per ounce. The Nikkei 225 rebounded for the first time in 4 days, while market expectations shifted ahead of the release of US employment and inflation data.
In the foreign exchange market, the yen rose to ¥155.25 per dollar in morning trading before moving largely sideways. Markets are watching the yen closely against the backdrop of expectations for a Bank of Japan rate hike. The yen is expected to gain around 2.5% this week, with some market participants saying that expectations for a hawkish stance ahead of the Bank of Japan meeting on 17–18 September are having an impact.
In the gold market, prices were flat at around $4,475 in Asian morning trading as markets awaited the release of the US jobs report. The Federal Reserve’s future rate policy and trends in inflation data were cited as key points of focus.
In equity markets, the Nikkei 225 rebounded after 4 consecutive days of declines, supported by gains in related stocks such as SoftBank Group and Arm Holdings.
Among other major market developments, the New Zealand dollar rose to $0.5892 following a policy rate hike, while the Australian dollar rose to $0.7206. The USD Index was largely flat at 99.01, while the euro traded at $1.1625 and the pound at $1.3527.
Comments from the Federal Reserve Board and market attention are focused on the Fed meeting in late September and upcoming inflation data. Bets that interest rates will be held steady in September have resurfaced in the market.