Asian Markets Stumble as Dollar Flexes Ahead of Pivotal Week

Risk-off vibes grip Asia as traders brace for a make-or-break macro week.

Dollar muscles up while regional equities bleed—classic 'safe haven' theater.

Will central banks flip the script or double down on pain? Place your bets.

*Cynical finance jab*: Meanwhile, hedge funds still charge 2-and-20 for this 'alpha.'

US futures inched higher

U.S. S&P 500 futures ROSE 0.2% after the S&P 500 cash index closed at a record high overnight, helped by solid results from Alphabet. The Nasdaq Composite also hit a new peak.

A global equity gauge, the MSCI All Country World Index, dipped 0.1% on Friday but remained close to Thursday’s record high. It is on track for a weekly gain of about 1.3%, driven by hopes for U.S. trade deals with the EU and China after this week’s agreement with Japan.

In the United States, President Trump’s deadline for new tariffs falls on August 1, and the Federal Reserve meets to set interest rates. The Labor Department will publish its monthly payroll report, and corporate results are due from Microsoft, Apple, Amazon, and Meta.

The Bank of Japan is set to issue its policy decision on Thursday, and on the same day, Prime Minister Ishiba’s Liberal Democratic Party will hold an internal meeting.

In Europe, the European Central Bank opted on Thursday to keep its policy rate unchanged, pausing its cycle of rate cuts as it assesses the impact of U.S. tariffs.

Dollar rose against yen while EU closed lower

On currency markets, the euro closed 0.2% lower against the dollar, trading around $1.1743 on Friday. The dollar rose to 147.37 yen, adding to Thursday’s 0.4% gain. The euro’s drop after the ECB decision underlined cautious sentiment.

President TRUMP kept up pressure on Federal Reserve Chair Jerome Powell to lower borrowing costs during a rare visit to the U.S. central bank on Thursday. He said, however, that he did not plan to fire Powell.

In the Treasury market, yields on 10‑year U.S. government bonds eased slightly to 4.39%, reversing gains from Thursday. In Japan, 10‑year bond yields fell 0.5 basis point to 1.595%, just under this week’s high of 1.6% last seen in October 2008.

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