- The Asian share index fell on Friday, capping a first-half rally in global equities. The yen fell below the closely watched 145 level against the dollar, putting traders on alert for intervention from Tokyo authorities.
- Japanese stocks fell, Australia's benchmark remained stable, and Hong Kong shares fluctuated.
- As the first half of the year comes to a close, Japan's Topix has gained more than 20%, while Chinese equities are down and Australian stocks are up slightly. So far this year, a global index of developed and emerging-markets stocks has gained nearly 12%.
- US stock futures rose after the S&P 500 rose slightly on Thursday as traders adjusted their positions for the end of the quarter.
- The yen's breach of 145 was its first since November, highlighting the sharp policy divergence between the Fed and the Bank of Japan. Previously, inflation in Tokyo accelerated for the second time in three months in June, raising hopes that the central bank will raise its price forecast in the coming months.
- Treasuries recovered from a previous session selloff that saw two-year yields jump 15 basis points as investors moved closer to the Fed's forecast for tighter monetary policy in the coming months. Swap markets now predict a nearly 50% chance of another Fed hike before the end of the year. A measure of dollar strength changed little.
- Australian and New Zealand sovereign bond yields rose by about eight basis points as rate pressures spread into Asia. Economists expect the Reserve Bank of Australia to raise interest rates at its meeting next week, while traders anticipate a pause before another hike in August.
