2021 ET - The Nikkei Stock Average fell 1.8% to 69202.93 on possible profit-taking following three straight sessions of gains on the benchmark index. Domestic technology shares were also weighed by Wednesday's pullback in shares of chip makers on the Nasdaq Composite. The main theme has been a rotation out of semiconductor stocks, as investors took profits following the sector's exceptional 1H rally, Commerzbank Research analysts say in a research report. Among worst performers on the Nikkei, Ibiden dropped 5.9%, JX Advanced Metals fell 5.7%, and Disco Corp. shed 5.3%. The dollar is at 162.51 yen versus Y162.60 late Wednesday in New York. (ronnie.harui@wsj.com)
1947 ET - The rise of Australia's right-wing One Nation party over the last year continues, with it recording a new milestone in the state of Victoria. A poll published in the Australian Financial Review shows that voter support for One Nation has overtaken Labor and the Liberal-National Coalition for the first time in the state ahead of an election in November. The polling shows Labor and the Coalition neck and neck on a primary vote of 26% each, while One Nation recorded a primary vote of 27%. The drift in voter support toward One Nation is even stronger when viewed at the national level. (james.glynn@wsj.com; X @JamesGlynnWSJ)
1939 ET - Japanese stocks may fall on possible profit-taking following three straight sessions of gains on the benchmark index. Domestic technology names may also be weighed by Wednesday's pullback in shares of chip makers on the Nasdaq Composite. Nikkei futures opened 965 points lower at 69700 on the SGX. The dollar is at 162.55 yen versus Y162.60 late Wednesday in New York. The Nikkei Stock Average closed 0.6% higher at 70474.96 on Wednesday. (ronnie.harui@wsj.com)
1833 ET - Macquarie is braced for fresh intervention to shore up the yen, but perhaps not until it falls to 165 against the dollar. It also thinks any intervention in currency markets might wait until today's U.S. non-farm payrolls data is out of way. "A soft payrolls outcome could present ideal conditions to give intervention maximum bang for its buck," Macquarie says. "Conversely, intervening today would be a waste of bullets if a strong payrolls report leads to broad-based U.S. dollar strength afterwards." The yen fell to a fresh 40-year low against the dollar in Asia on Wednesday. It was recently at 162.53. (david.winning@wsj.com; @dwinningWSJ)
1646 ET - Purchasing managers indexes for Mexico were mostly higher in June, likely lifted by the country's co-hosting the soccer World Cup along with the U.S. and Canada. S&P Global's manufacturing index rose to 51.3 from 49.6 in May, moving into expansionary territory for the first time in 10 months. The Bank of Mexico/Inegi PMI rose 0.8 point to 50.2, while the Mexican Institute of Finance Executives' index fell to 47.3 from 48.3. "The FIFA World Cup was identified by companies as a key factor behind a pick-up in sales growth, which curbed the drop in production volumes," S&P Global says. With several comments linking demand growth to the World Cup, however, "there is a high chance that the recovery will be short-lived." (anthony.harrup@wsj.com)
1641 ET - Remittances to Mexico rose 3.8% in May from the year-earlier month to $5.61 billion, the Bank of Mexico reports, bringing transfers for the first five months to $25.29 billion, a 2.8% year-on-year increase. A rising labor participation rate among Mexican migrants in the U.S. since September coincides with a recovery in remittances, Juan José Li Ng of BBVA says in a note. The participation rate fell from April to August of last year, which was the period of sharpest declines in remittances, he adds. Unemployment among Mexico migrants in the U.S. is trending down, "which is favorable for the economy of these households and for their relatives who receive remittances in Mexico." (anthony.harrup@wsj.com)
1501 ET - New car buyers are lenghtening their loans at record levels, an analysis from Edmunds finds. During 2Q, 36.5% of new car buyers took a loan of 73 months or longer, compared with 27.3% a decade earlier. For loans of 84 months or longer, it was 23.9%, another record. This dynamic lowers monthly payments, but can hook buyers into much higher interest payments over the course of their loans, Edmunds Director of Insights Ivan Drury says: "Stretching out the term to be able to swallow a higher-priced vehicle guarantees you'll be building equity at a snail's pace, leaving you highly vulnerable to falling underwater when it's time to trade in." (elias.schisgall@wsj.com)
1449 ET - Economists polled in June by the Bank of Mexico lowered their year-end inflation estimates, while leaving growth forecasts intact. Inflation is expected to end the year at 4.2%, down from 4.35% in the May survey. The median core CPI forecast slipped to 4.18% from 4.22%. Estimates for GDP growth are unchanged at 1.1% for this year and 1.8% for 2027. The Bank of Mexico is seen keeping its benchmark interest rate at the current 6.5% through year-end, much in line with the central bank's latest guidance that it "will be appropriate to maintain the reference rate at its current level. "The central bank's inflation target is 3%. (anthony.harrup@wsj.com)
1445 ET - Longer auto loan terms and record-high monthly average payments of $777 during 2Q indicate that financially pressured new car buyers will face further challenges down the road, according to an Edmunds analysis of new car financing data. "When you see loan terms extending to record lengths, down payments shrinking, and monthly payments hitting all-time highs, you're looking at a clear recipe for long-term financial strain," Edmunds Head of Insights Jessica Caldwell says. "Until we see a major shake-up in automaker incentives, a meaningful drop in interest rates, or a shift toward a more affordable mix of vehicles--none of which appear to be on the horizon--consumers will have to keep walking this financial tightrope."(elias.schisgall@wsj.com)
1251 ET - Privacy coin Zcash, in the midst of a volatile year that saw prices spike near all-time highs, is making advances in insulating itself from being cracked by quantum computing. Research published by CoinDesk, which the firm says was commissioned by a group called GenZcash, says that Zcash has roadmaps for both scaling its chain and making it resistant to quantum computing designed to break confidentiality. "We can have the best of both worlds, a private digital payment network that scales to billions of users by fully leveraging both zero-knowledge and verifiable computation" says Sean Bowe, head of Project Tachyon, which is focused on scaling the Zcash blockchain. Zcash is trading up 3.7% to $414, according to data from LSEG. (kirk.maltais@wsj.com)
1220 ET - Gold prices rebound after softer-than-expected jobs data and Federal Reserve Chairman Kevin Warsh not giving any signal as to whether the central bank would consider raising interest rates at its next meeting. In afternoon trading, New York gold futures rise 1.5% to $4,100.60 a troy ounce. According to the CME FedWatch tool, traders are currently pricing in about a 64% chance of an interest-rate hike for September. Bullion is typically seen as a hedge against inflation, though a higher interest-rate environment tends to diminish the nonyielding asset's appeal. "Now it is up to US data to keep those hawkish Fed bets alive, making tomorrow's NFP data a major market event," says Fawad Razaqzada, market analyst at Forex.com. (giulia.petroni@wsj.com)
1124 ET - Bitcoin prices may have further downside before they find a bottom, if the predictions of traders going short on the cryptocurrency end up being correct. Traders have been seen adding puts on bitcoin, according to data from Deribit. Near-term, traders appear to believe that bitcoin could lapse to around $54,000. A majority of puts dated for expiration this Friday are at the $54k mark, according to Deribit, while those dated for expiration next Friday are around $56k. Call options take back control closer to the end of the month, according to the data. The average realized price for bitcoin sits around $53,000 as of now, says analysts with Bitfinex in a note. "Historically, this is the line past which an extended trade marks full capitulation," says the firm. (kirk.maltais@wsj.com)