Yen Weakens, Global Stocks Remain Close to Record Highs – Asia Market Wrap

Global stocks held near record highs and futures pointed to further gains after a tech-led Wall Street rally followed a month of high volatility. The Yen gave back some of its recent advance that was triggered by US and Japanese intervention.

The MSCI All Country World Index held around 1,130, just below its all-time high of 1,136.59. A tech-led rally on Wall Street lifted the S&P 500 to within striking distance of a record, with Palantir surging 14% in extended trading after raising its forecasts. European stock futures pointed to gains, while Asian shares lagged as persistent volatility in South Korea weighed on sentiment.

The Yen slipped 0.3% to 157.54 per Dollar during the Asian session, after having surged more than 4% over the previous four days on coordinated action by the US and Japan.

Treasuries pared some of the prior session’s gains as oil rebounded, with WTI climbing 1.2% after sliding 5% as optimism grew that Middle East tensions were easing. The 10-year yield rose 2 bps to 4.69%. In Japan, bond futures sank and government yields rose after a 10-year bond sale had its weakest demand since May 2025.

The Wall Street rally saw a gauge of megacaps post its best day since March, while a gauge of semiconductor stocks rose about 1%. But volatility in the sector is rippling across the industry, with Coatue Management’s hedge fund plunging 8.3% last month as the AI stock selloff whipsawed another tech-focused money manager.