Bessent Pushes Fed Easing, Yen Strength Sends Nikkei Down – Asia Market Wrap

The yen rose the most in almost two weeks after US Treasury Secretary Scott Bessent said he expected Japan to raise interest rates to tame inflation. Asian stocks declined after a three- day rally.

Japan’s currency advanced as much as 0.7% versus the dollar as Bessent said the Bank of Japan is falling behind the curve in addressing inflation and he expected it to hike rates. A gauge of the dollar fell for a third day as Bessent also pushed for the Federal Reserve to ease policy. Other Asian currencies such as the Indonesian rupiah and Malaysian ringgit also strengthened.

The stronger yen sent the Nikkei-225 Stock Average down 1.4%, dragging the region’s equity gauge lower. Technology shares declined while Chinese indexes advanced. Bitcoin reached an all-time high and gold edged up. Equity-index futures for the US dipped 0.1%.

Bessent – who suggested the Fed’s benchmark rate ought to be at least 1.5 percentage points lower than it is now – said officials might have cut rates if they’d been aware of the revised data on the labor market that came out a couple of days after the latest meeting.