Hong Kong’s Hang Sang rebounds in Asian markets, US PCE eyed

Asian equities rebound from 10-month lows amid the thin volume due to the holidays in China and South Korea.
Headline Tokyo Consumer Price Index (CPI) for September eased to 2.8 YoY vs. 2.9% prior.
Investors await the US Core Personal Consumption Expenditure (PCE) Price Index report.

Lallalit Srijandorn FXStreet

Asian stocks recover from their 10-month lows, but investors remain concerned about rising interest rates that weighed on sentiment. Investors await the release of US consumer inflation data due later in the North American session on Friday.

At press time, Hong Kong’s Hang Sang surges 2.65% to 17,832 and Japan’s Nikkei is down 0.35%. Friday’s trading volume was muted due to holidays in China and South Korea.

In Japan, the headline Tokyo Consumer Price Index (CPI) for September eased to 2.8%% YoY from 2.9% in the previous reading. Meanwhile, the Tokyo CPI ex Fresh Food, Energy came in at 3.8% YoY from 4.0% in August. Tokyo CPI ex Fresh Food eased from 2.8% to 2.5% for the said month compared to analysts’ estimations of 2.6%.

On Thursday, Finance Minister Shunichi Suzuki reiterated that he won't rule out any steps to respond to disorderly FX moves. Traders turns cautious amid the fear of intervention as the level of 150.00 would prompt Japanese authorities to intervene as they did last year.

Meanwhile, the Hong Kong's Hang Seng edges higher as technology stocks recovered on Friday.

Market participants will closely monitor the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation due later on Friday. The annual consumer inflation for August is expected to decline from 4.2% YoY to 3.9%.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD extends losses toward 1.3200 on broad USD strength

GBP/USD declines toward 1.3200 in the second half of the day on Tuesday. Political uncertainty in the United Kingdom weighs on the British Pound, alongside weak business PMI data for June. Meanwhile, the US Dollar capitalizes on the risk-off mood and stronger-than-forecast PMI readings, making it difficult for the pair to find its footing.

EUR/USD falls to fresh 12-month low below 1.1400

EUR/USD comes under renewed selling pressure in the second half of the day on Tuesday and trades at its lowest level since June 2025 below 1.1400. Mixed PMI data from Germany and the Eurozone makes it difficult for the Euro to find demand, while the risk-averse market atmosphere and the upbeat PMI prints support the USD, forcing the pair to stay on the back foot.

Gold drops to nearly two-week low, holds above $4,100

Gold (XAU/USD) turns south following Monday's rebound and trades deep in the red but holds above $4,100 on Tuesday. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal and weighs on the precious metal. In the meantime, the USD gathers strength on hawkish Fed expectations and upbeat PMI data, dragging XAU/USD lower.

MiCA regulations could be the next bullish catalyst for crypto – Georg Harer, co-CEO at Bybit EU

The cryptocurrency market is losing momentum and liquidity due to the lack of a bullish catalyst. In an exclusive interview with FXStreet, Georg Harer, co-CEO at Bybit EU, says that the Markets in Crypto-Assets (MiCA) regulations could inject liquidity into the crypto market from traditional fund houses.

Will PCE inflation data fuel bets of early Fed rate hike?

Warsh’s hawkish debut sparks sharp repricing in Fed funds futures. Inflation is front and centre as September hike now seen likely. Will PCE report due Thursday, 12:30 GMT, support the hawkish bets?

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.