BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Asian markets fell Monday, mirroring Wall Street’s decline, as concerns over the U.S. economy intensified following a weaker-than-expected July jobs report. Investors now see a 90% chance of a September Federal Reserve rate cut, up from 40% before the data release. U.S. payroll revisions showed 290,000 fewer jobs than previously thought, with the three-month average dropping to just 35,000 from 231,000 earlier this year.
Goldman Sachs analysts noted the data signals below-potential U.S. growth. Market sentiment was further shaken by President Donald Trump’s firing of the Labor Statistics chief, raising fears over the credibility of economic data and the politicization of Fed policy. Trump will soon appoint a new Fed governor, expected to support lower interest rates.
Rate cut expectations drove U.S. two-year Treasury yields down to 3.661%, after Friday’s 25-basis-point plunge — the largest since August 2024. Futures now imply 65 basis points of easing by year-end. The dollar weakened, falling to 147.24 yen and $1.1585 per euro, as the dollar index dropped to 98.659 from last week’s 100.250 peak. Sterling traded at $1.3287 ahead of the Bank of England’s expected quarter-point cut Thursday.
In equities, S&P 500 futures edged up 0.1% and Nasdaq futures 0.2%, supported by strong earnings season results, with 63% of S&P 500 firms beating forecasts. Still, Asia lagged, with Japan’s Nikkei down 2.1% and South Korea’s KOSPI off 0.2%, while MSCI’s Asia-Pacific ex-Japan index rose 0.3%.
Commodity markets saw gold steady at $3,361 an ounce after a 2% jump Friday. Oil extended losses as OPEC+ approved a major September output hike, reversing last year’s 2.2 million bpd cuts. Brent fell 0.6% to $69.24 and U.S. crude slipped 0.6% to $66.93.
