Energy shock pushes European yields higher as JPY breaks key support

• The EUR/USD currency pair traded flat near 1.1625 on Tuesday as investors waited for U.S. inflation data and a European Central Bank interest rate decision. • Recent U.S. labor data showed the economy added 162,000 new jobs in August, significantly exceeding the forecast of 56,000.

• Energy traders drove market trends at the start of the trading week while U.S. markets were closed for the Labor Day holiday. • Oil prices rose to $98 per barrel and Dutch TTF gas reached €74/MWh following tit-for-tat strikes between the U.S. and Iran on regional vessels.

• The EUR/JPY currency pair fell to around 181.20 during early European trading on Monday as the Japanese Yen strengthened against the Euro. • The decline follows projections from Japanese officials that the Bank of Japan will implement a rate hike this month.

• Asia Pacific borrowers surged into the dollar bond market on Tuesday to secure funding before interest rates potentially rise further. • Mitsubishi UFJ Financial Group Inc., the largest bank in Japan, is among more than 10 regional issuers seeking to sell debt, including a $3.5 billion offering.

• Most Asia-Pacific stock markets declined today as rising crude oil prices fueled concerns over inflation and US monetary policy. • Japan's Nikkei 225 fell 0.27% and Australia's S&P/ASX 200 dropped 0.33%, though South Korea's KOSPI rose 0.51%.

• Asian value stocks are currently outperforming growth stocks by the widest margin since the first quarter of 2022. • Investors are shifting capital toward cheaper financial stocks as semiconductor selloffs impact the regional tech index.

• Asian stock markets showed mixed results recently, with gains in Tokyo and Seoul driven by increased investment in computer chipmakers. • Hong Kong's Hang Seng index fell 1.1% to 25,377.12, while the Shanghai Composite dropped 0.2% to 3,920.70.

• The Bathla Group building company collapsed, highlighting systemic issues within the private credit market. • Oil prices rose following increased geopolitical tensions in the Middle East.

• The Philippine peso became the worst-performing currency in emerging-market Asia this year as it fell while its regional peers advanced against the U.S. dollar. • The currency has dropped 6.2% so far this year.

• Institutional investors and exchange-traded funds (ETFs) are increasing their capital allocations to precious metals. • This shift follows an earlier bull market driven primarily by Asian physical demand and central bank purchases.

• Dow futures fell more than 300 points as Wall Street resumed trading after the Labor Day holiday. • S&P 500 and Nasdaq futures both dropped 20 points following reports of additional attacks in West Asia.