last updated: 9/29/2025 9:21:03 AM NY time

APAC Market and Japanese Yen - Current Overview as of September 29, 2025

APAC Market Summary

The Asia-Pacific (APAC) markets are showing mixed but cautiously optimistic signals amid ongoing global trade tensions and economic data releases. Key indices in the region have experienced slight recoveries following recent losses:

• Japan's Nikkei index rose by approximately 0.35%.
• Hong Kong's Hang Seng index gained close to 0.3%.
• South Korea's KOSPI led gains with an increase of over 1.9%.

These movements reflect tentative investor confidence despite the backdrop of tariff uncertainties and inflation concerns globally.

Key Market Drivers in APAC

• Trade and Tariffs: The US administration is set to announce a new round of tariffs, emphasizing reciprocity with trading partners. This has heightened market volatility and cautious positioning among investors.
• Central Bank Actions: The Reserve Bank of Australia (RBA) has maintained interest rates at 4.1%, signaling a tight monetary policy stance amid inflation risks. The Bank of Japan (BoJ) is under scrutiny with upcoming Tankan survey data and policy statements that may hint at future rate adjustments.
• Economic Data: China's manufacturing PMI showed expansion, with the official index at 50.5, indicating steady growth despite external pressures.

Technical and Sentiment Analysis of APAC Instruments

Technical indicators for major APAC instruments suggest a cautiously bullish short-term outlook, though trader sentiment remains mixed:

• The overall APAC trading zone bias is LONG, supported by bullish cyclical RSI and seasonality indicators.
• However, short-term order book sentiment shows some bearishness, reflecting uncertainty.
• Key instruments such as EPAM and EPAC show bullish trading zones with mixed harmonics and exposure ratios.

Japanese Yen (JPY) Market Update

The Japanese Yen has strengthened notably as a safe-haven currency amid collapsing global bond yields and heightened market volatility. Key points include:

• JPY is exhibiting strong inverse correlation with the S&P 500 volatility index (VIX), indicating sensitivity to risk sentiment rather than interest rate differentials.
• USD/JPY is currently trading near an 8-week high around 149.5, with technical patterns such as a rising wedge suggesting potential bearish risks ahead.
• Upcoming Japanese economic data, including retail sales, Tankan survey, and unemployment figures, are expected to influence BoJ policy expectations and JPY strength.
• Market focus is on the US tariff announcements and economic data releases, which could introduce volatility in USD/JPY.

Key Technical Indicators for USD/JPY

• Resistance near 151.00 with recent price reversals indicating strong selling pressure.
• Support levels to watch at 148.65 and 147.10 if bearish momentum continues.
• RSI and MACD indicators suggest weakening bullish momentum and potential downside risk.

Commodities and Other Instruments

Precious metals and commodities are reflecting global uncertainty:

• Gold prices have rallied above USD 3,100, supported by safe-haven demand amid trade war concerns.
• Silver and platinum are experiencing mixed trends, with silver testing multi-year highs but facing overbought RSI signals, and platinum showing strong momentum but also risk of pullback.
• Crude oil prices are lower due to demand concerns linked to potential global trade disruptions.

Conclusion and Outlook

The APAC market is navigating a complex environment of trade tensions, central bank policies, and economic data releases. The Japanese Yen remains a key safe-haven currency, with its performance closely tied to global risk sentiment and upcoming economic indicators. Investors should remain cautious and monitor tariff developments, BoJ policy signals, and US economic data, which will be critical in shaping market direction in the near term.