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Japanese Shares Rise as Oil Steadies, Markets Await US Inflation Data

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Japanese equities advanced Tuesday, while crude prices held firm as diminishing prospects for resolving the Strait of Hormuz standoff rekindled inflationary worries.

The Nikkei 225 climbed 298.4 points, or 0.5%, to 65,905.10 at the opening bell.

Investors are now eyeing Wednesday's U.S. consumer price index data for clues on the Federal Reserve's rate trajectory.

At home, growth strategy minister Minoru Kiuchi dismissed fiscal worries about Prime Minister Sanae Takaichi's 370 trillion yen initiative, Bloomberg News reported on Monday, citing an interview.

Kiucho reaffirmed Japan's commitment to debt sustainability and international fiscal metrics would boost the yen long-term, the news wire said.

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US Equity Markets End Higher After Jobs Data Lifts Odd for Rate Pause

US equity indexes ended higher Friday after a surprise drop in nonfarm payrolls boosted the odds the Federal Reserve will hold interest rates steady in September.* The July employment report showed nonfarm payrolls fell by 23,000, compared with the 80,000 jobs increase expected in a Bloomberg poll.* The probability of the Federal Reserve keeping its target rate unchanged at 3.5% to 3.75% in September rose to 58.1% on Friday from 45% a day ago and 33% a week ago, according to the CME FedWatch tool.* Iranian lawmakers are debating the wording of a proposed deal with Oman on the Strait of Hormuz, with US President Donald Trump insisting an agreement is getting closer, Bloomberg reported.* September West Texas Intermediate crude oil fell $0.32 to settle at $76.97 per barrel, while September Brent crude, the global benchmark, was last seen down $0.40 at $82.09.* Airbnb (ABNB) shares rose 17%, the top gainer on the S&P 500, after Q2 results beat Wall Street's estimates amid strong demand fueled by the FIFA World Cup.* Trade Desk (TTD) shares slumped 22%, the biggest drop on the S&P, following stock rating downgrades from multiple brokerages, including Citigroup, after disappointing Q2 results late Thursday.

Dow JonesNasdaq CompositeS&P 500$ABNB$TTD
Japan

Update: US Equity Indexes Rise Amid Growing Expectations Fed to Extend Pause After Weak Nonfarm Payrolls

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes rose as a surprise drop in nonfarm payrolls lifted the odds for a monetary policy pause in September.The Nasdaq Composite climbed 1.1% to 26,651.4, with the S&P 500 up 0.5% to 7,752.1 and the Dow Jones Industrial Average higher by 0.2% to 54,015.2.The July employment report showed nonfarm payrolls fell by 23,000, compared with the 80,000 jobs increase expected in a Bloomberg-compiled poll. Private payrolls rose by 30,000 in July, the same as in June but below the 82,000 expected. Government sector jobs decreased by 53,000.Looking past the government decline, the increase in private payrolls was below the lowest forecast, Jefferies Chief US Economist Thomas Simons said in a note. Large declines in leisure and hospitality, retail trade and financial services offset strength in construction and healthcare and social assistance, Simons said, adding that the next move from the Federal Reserve is an interest-rate cut, and most likely in December.The probability of the Federal Reserve keeping its target rate unchanged at 3.5%-3.75% in September surged to 56% on Friday from 45% a day ago and 33% a week ago, according to the CME FedWatch tool.US Treasury yields fell, with the 10-year yield down 1.4 basis points to 4.66% and the two-year lower by 4.1 basis points to 4.20%.Iranian lawmakers are debating the wording of a proposed deal with Oman on the Strait of Hormuz, with US President Donald Trump insisting an agreement is getting closer, Bloomberg reported. Iran's Deputy Foreign Minister Kazem Gharibabadi said earlier this week that an understanding with Oman had been reached "in principle," and state TV cited one lawmaker on Friday as saying the final text and details of an agreement with Muscat will be announced "soon," according to the news report.The Saudi crown prince, Turkish president and Pakistani prime minister have signed a joint defense deal in Mecca stating that "any armed attack against any one of the three states shall be regarded as an attack against them all," Al Jazeera reported. Pakistan is one of the few countries in the world with nuclear weapons.Saudi Arabia expects imminent coordinated attacks from Iraqi militias north of the Gulf state and from Yemen's Houthis from the south under the supervision of Iran's Islamic Revolutionary Guard Corps, a senior Saudi official told Reuters.The front-month US West Texas Intermediate crude oil contract jumped 1.2% to $78.24 a barrel, and global benchmark North Sea Brent advanced 1.3% to $83.55 a barrel.

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Japan

Update: US Equity Indexes Rise as Fed Pause Odds Jump Amid Surprise Drop in Nonfarm Payrolls

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes rose while government bond yields fell after an unexpected drop in nonfarm payrolls lifted bets for a monetary policy pause.The Nasdaq Composite jumped 1.2% to 26,667.5, with the S&P 500 up 0.6% to 7,758.9 and the Dow Jones Industrial Average higher by 0.3% to 54,029.3. Consumer discretionary, materials, and technology topped gainers in a broadly positive tape, while energy led a trio of decliners.The July employment report showed nonfarm payrolls fell by 23,000, compared with the 80,000 jobs increase expected in a Bloomberg-compiled poll. Private payrolls rose by 30,000 in July, the same as in June but below the 82,000 expected. Government sector jobs decreased by 53,000.The probability of the Federal Reserve keeping its target rate unchanged at 3.5%-3.75% in September surged to 56% on Friday from 45% a day ago and 33% a week ago, according to the CME FedWatch tool.US Treasury yields fell, with the 10-year yield down 1.9 basis points to 4.65% and the two-year lower by 4.1 basis points to 4.2%.An Iranian official said a framework on the Strait of Hormuz has been agreed with Oman, with "a final decision to be made at higher levels," Al Jazeera, a Middle Eastern broadcaster, cited Iranian state media reports. The deal would not automatically reopen the waterway, Tehran's deputy foreign minister said, according to CNN.The front-month US West Texas Intermediate crude oil contract slipped 0.6% to $76.80 a barrel, and global benchmark North Sea Brent edged 0.7% lower to $81.91 a barrel.

Dow JonesNasdaq CompositeS&P 500