The dominant macro signal into the weekend was a third consecutive weekly advance for the S&P 500 — closing at 7,785.76 — anchored by mild US inflation data that materially eased near-term rate-hike fears. US Treasury yields fell across the curve on Friday, with the 2-year dropping 5bp to 4.15% and the 10-year shedding 5bp to 4.63%, while the 30-year slipped 3bp to 5.21%; that yield curve configuration — with the 10-to-30 spread at 58bp — reflects a market repricing toward a more gradual Fed tightening path ahead of Jackson Hole, even as the front end remains elevated and consumer sentiment data due today (UoM preliminary, forecast 54.7 vs prior 54.4) could test that narrative. The VIX closed at 14.25, down 2.60%, signalling that near-term US hedging demand has eased materially.
For Asia-Pacific, the cross-asset read is nuanced. USD/JPY held at 159.27 (down 0.10%) despite coordinated US-Japan yen intervention signals, suggesting the pair remains under structural upward pressure as the BoJ-Fed policy gap narrows only slowly — a direct margin headwind for Japanese import-dependent sectors and a tailwind for exporters like Sony (6758.T, +5.73% Friday) and Nintendo (7974.T, +6.91%). USD/CNY eased to 6.7322 (down 0.16%), consistent with modest PBOC support, while the CSI 300's sharp 3.60% decline to 4,529.1 — contrasting with an essentially flat SSE at 3,927.18 — signals concentrated selling pressure in large-cap A-share names rather than broad market stress. The AUD/USD at 0.7092 (+0.40%) tracked the oil and commodity bid, but the ASX 200's 0.80% decline — led by Materials (-2.58%) — reflects that iron ore at $95.17/t and a weaker China demand outlook are a stronger near-term force than the softer USD.