- The yen also rose against the dollar early on Friday following the release of U.S. inflation data, with analysts and traders wondering about possible intervention by the U.S. Treasury.
- On Friday, Japan’s top foreign exchange official, Kanda Masato, said authorities would take action in the foreign exchange market if necessary.
Asia-Pacific markets were mostly lower on Friday after U.S. inflation fell to the lowest level in nearly three years in June, giving the Federal Reserve further impetus to cut interest rates.
The consumer price index rose 3% from a year earlier, slowing from 3.3% in May.
Core inflation, which excludes food and energy costs, rose 0.1% from the previous month and 3.3% from a year earlier, beating expectations of 0.2% and 3.4%, respectively.
The yen rose suddenly against the dollar early on Friday after the release of U.S. inflation data, leading analysts and traders to suspect possible intervention by the U.S. Treasury.
The yen was trading at 158.55 yen against the dollar around 12 a.m. Tokyo time, after trading around 161.52 yen at the close on Thursday.
The currency has strengthened further against the US dollar and is currently at 158.23.
On Friday, Japan’s top foreign exchange official, Kanda Masato, said authorities would take action in the foreign exchange market if necessary.
Reuters also reported that Kanda said recent fluctuations in the yen’s value had been somewhat sudden, but declined to comment on whether authorities had intervened in the currency market.
Japan’s Nikkei stock average fell 1.57% on Friday, leading declines in Asia after hitting a record closing high for the third straight day and hitting a record high on Thursday. The Topix also retreated, down 1.08%.
South Korea’s KOSPI fell 0.94%, while the small-cap KOSDAQ lost 0.19%.
Australia’s S&P/ASX 200 rose 0.23% to surpass its all-time high of 7,896.9 recorded on March 28, just shy of its all-time high.
Hong Kong Hang Seng Index futures were at 17,978, below the HSI’s last close of 17,832.33.
Overnight in the United States, the S&P 500 fell from record highs as investors pulled out of this year’s biggest technology stocks, including Nvidia and Meta Platforms.
The KOSPI index fell 0.88%, retreating from its record high hit early in trading.
The Nasdaq Composite Index also hit a new record early in the trading day, losing 1.95%, weighed down by Nvidia’s more than 5% drop.
The Dow Jones Industrial Average rose 0.08%.
—CNBC’s Lisa Kailai Han and Brian Evans contributed to this report.
