The recent shift in global macroeconomic dynamics has seen the dollar weaken against major currencies, following President Trump's softer stance on tariffs with China. This has led to a rally in Asian currencies, with the offshore yuan appreciating by as much as 0.7%. The hawkish policy stance from the Bank of Japan, which included a rate hike and optimistic CPI forecasts, has further strengthened the yen, testing the 155-handle. This has resulted in higher Japanese bond yields, although it has subdued gains in Japanese equity markets like the Nikkei and Topix.
The weaker dollar has also impacted commodity markets, reducing the cost of dollar-denominated commodities such as crude oil and gold. This has led to an increase in their prices, with WTI crude futures hovering around $74.50 and gold nearing a record high. The easing of tariff rhetoric has bolstered Chinese equities, with the Hang Seng and CSI 300 indices experiencing gains, reflecting improved investor confidence and risk sentiment across Asian markets.
As of 00:51 on January 24, Brent crude oil (CO1) is trading at $77.52, slightly down from its last close of $77.56. The broader market context, including a weaker dollar and shifts in global monetary policies, continues to influence commodity prices and investor sentiment.