Asia stocks slide as USD/JPY holds near 158, oil climbs
As of 2026-10-08 12:00 SGT
Key points
- Stock futures are little changed in Asia after the S&P 500 retreated from its Oct 6 record close; Dow, S&P 500 and Nasdaq 100 futures are all marginally lower
- USD/JPY is steady around 158.11 (+0.05%), inside Oct 7's 158.23-157.57 range; the PBOC set the USD/CNY reference rate at 6.7367, weaker than the 6.7254 consensus estimate
- The September FOMC minutes showed officials see another rate hike coming before year-end with no clear signal on timing; the 10-year Treasury yield holds near 5.277%, having backed off a 24-year high after a solid bond auction
- Oil extended its advance to $89.77 (+1.69%) as the US readies options to resume strikes on Iran and a tanker was hit off Qatar; Houthis claimed a missile attack on Riyadh's airport
- Samsung flagged a preliminary Q3 operating profit of roughly 107 trillion won (~$80 billion), its first quarter above the 100 trillion won mark and ahead of LSEG consensus, even as its shares slipped
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 158.11 | +0.05% |
| EUR/USD | 1.1208 | +0.08% |
| Nikkei 225 (intraday) | 69,288 | -1.07% |
| Hang Seng (intraday) | 23,965 | -1.30% |
| Dow futures | 51,401 | -0.09% |
| S&P 500 futures | 7,849.50 | -0.04% |
| Nasdaq 100 futures | 31,388 | -0.05% |
| Gold futures | 4,163.30 | +0.55% |
| WTI crude | 89.77 | +1.69% |
| Bitcoin | 82,654 | -0.75% |
| US 10-yr yield | 5.277% | +0.8bp |
Foreign exchange — USD/JPY steady
USD/JPY is holding a tight range around 158.11 (+0.05%), inside Oct 7's 158.23-157.57 band. The PBOC set its daily USD/CNY reference rate at 6.7367, weaker than the Reuters estimate of 6.7254, as China's onshore markets return to full trading after the Golden Week break. EUR/USD has ticked up slightly to 1.1208 (+0.08%). Expect USD/JPY to stay range-bound through the rest of the Asian session, with the yuan fixing in focus.
Equities — futures little changed after the pullback
US equity futures are barely moved (Dow -0.09%, S&P 500 -0.04%, Nasdaq 100 -0.05%) after the S&P 500 retreated from its Oct 6 record high, finishing just shy of the 7,850 mark and less than 1% off that peak. Asian equities are softer in the aftermath, with the Nikkei and Hang Seng both down more than 1% intraday as rate and inflation worries weigh. Samsung's preliminary Q3 operating profit jumped nearly ninefold to about 107 trillion won, ahead of LSEG consensus, though its shares slipped on the news. Futures should stay rangebound through the rest of the Asian session, with earnings season the next catalyst.
Macro — Fed minutes keep hike bets alive
The September FOMC minutes showed most officials still favor an additional rate hike before year-end, though with no clear signal on timing, keeping the 10-year Treasury yield pinned near 5.277% after backing off a 24-year high following a solid bond auction. A separate New York Fed survey found Americans growing more pessimistic about their own finances. Yields should stay the dominant cross-asset driver heading into tonight's NY open.
Commodities — oil extends its advance
WTI has pushed up to $89.77 (+1.69%) as Middle East supply risks intensify, while gold has firmed to $4,163.30 (+0.55%) after rebounding off this week's two-month low; Pepperstone flagged $4,275 as the level gold needs to clear to turn more constructive. Oil should keep a firm bid through the rest of the Asian session while Middle East risk stays elevated.
Geopolitics — Middle East risk stays elevated
The Pentagon has told US Central Command to finish preparations for possibly resuming large-scale operations against Iran, with Axios reporting a strike could come before the November 3 midterms; Trump said this week he isn't keen on a deal with Iran. Hormuz crude flows have recovered to roughly 76% of pre-war levels as rerouting via Oman and the Red Sea offsets lower throughput, though a diesel shortage persists. Middle East risk should keep oil's floor firm heading into early European trade.
Upcoming events
| Time (SGT) | Region | Event | Impact |
|---|---|---|---|
| 10/08 20:15 | UK | BOE Gov Bailey Speaks | Watch for any shift in the BOE's policy tone |
| 10/08 20:30 | US | Unemployment Claims (forecast 200K) | Gauge of labor-market resilience |
| 10/09 20:30 | CA | Employment Change (forecast 6.3K) | Key input for the loonie and BoC outlook |
| 10/09 20:30 | CA | Unemployment Rate (forecast 6.5%) | Released alongside the jobs print |
| 10/09 22:00 | US | UoM Consumer Sentiment (forecast 47.5) | Leading read on US consumer mood |