Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Trump, Xi Focus on Trade and AI at White House Summit 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
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Asian markets fell Monday, mirroring Wall Street’s decline, as concerns over the U.S. economy intensified following a weaker-than-expected July jobs report. Investors now see a 90% chance of a September Federal Reserve rate cut, up from 40% before the data release. U.S. payroll revisions showed 290,000 fewer jobs than previously thought, with the three-month average dropping to just 35,000 from 231,000 earlier this year.
Goldman Sachs analysts noted the data signals below-potential U.S. growth. Market sentiment was further shaken by President Donald Trump’s firing of the Labor Statistics chief, raising fears over the credibility of economic data and the politicization of Fed policy. Trump will soon appoint a new Fed governor, expected to support lower interest rates.
Rate cut expectations drove U.S. two-year Treasury yields down to 3.661%, after Friday’s 25-basis-point plunge — the largest since August 2024. Futures now imply 65 basis points of easing by year-end. The dollar weakened, falling to 147.24 yen and $1.1585 per euro, as the dollar index dropped to 98.659 from last week’s 100.250 peak. Sterling traded at $1.3287 ahead of the Bank of England’s expected quarter-point cut Thursday.
In equities, S&P 500 futures edged up 0.1% and Nasdaq futures 0.2%, supported by strong earnings season results, with 63% of S&P 500 firms beating forecasts. Still, Asia lagged, with Japan’s Nikkei down 2.1% and South Korea’s KOSPI off 0.2%, while MSCI’s Asia-Pacific ex-Japan index rose 0.3%.
Commodity markets saw gold steady at $3,361 an ounce after a 2% jump Friday. Oil extended losses as OPEC+ approved a major September output hike, reversing last year’s 2.2 million bpd cuts. Brent fell 0.6% to $69.24 and U.S. crude slipped 0.6% to $66.93.
