The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

2120 ET - The U.S.-China tariff dispute may be at its peak but a de-escalation in tensions aren't yet in sight, Citi research analysts write in a note. The exemption of consumer electronics and semiconductors from U.S. tariffs on Chinese goods could mitigate the impact on China's GDP by 0.4 percentage points if it were to be sustained, relieving some worries about employment, they say. However, the exemption could only be a pause for tech products, they add. Given potential supply chain disruptions, inflationary concerns and in the interest of U.S. companies impacted by tariffs, more tariff rollbacks in the future are possible, but the risk of tensions spilling into other sectors like finance and services trade remains high, they add. (kimberley.kao@wsj.com)

2046 ET - The yen strengthens against other G-10 and Asian currencies in the early Asian session amid global trade uncertainty. Scepticism over trade deals and escalating tensions between the U.S. and China can further damp risk appetite, and send the yen higher versus the greenback, three members of CBA's Global Economic & Markets Research say in a research report. The AUD/JPY will probably stay heavy this week amid the ongoing global trade conflict, the members add. USD/JPY falls 0.5% to 143.24; AUD/JPY drops 0.5% to 90.24; EUR/JPY is down 0.1% at 162.75. (ronnie.harui@wsj.com)

2037 ET - JGB yields diverge in the morning Tokyo session as investors digest mixed signals from the Trump administration over the weekend regarding tariffs on smartphones, laptops and other electronics. "If global financial markets regain stability, our economics team expects the BOJ to proceed with normalizing monetary policy," two members of JPMorgan's Japan Markets Research say. "With the grace period for the reciprocal tariff increase established and Japan and the U.S. quickly entering negotiations, they believe the likelihood of a rate hike in June has increased," the members say in a recent research report. The 5-year JGB yield is up 1bp at 0.845%; the 10-year yield is down 0.5bp at 1.340%. (ronnie.harui@wsj.com)

2022 ET - South Korea's benchmark Kospi rises 1.2% to 2462.10 in early trade, as electronics and semiconductor stocks advance. Traders are weighing the impact of back-and-forth U.S. tariffs after the Customs and Border Protection department's Friday notice to exempt smartphones and other electronics from President Trump's reciprocal tariffs. But Trump said Sunday those products will be in a separate tariff bucket. Index heavyweight Samsung Electronics gains 2.4%. Memory-chip maker SK Hynix adds 1.8%. Flat-screen maker LG Display rises 2.4%. USD/KRW is 1.7% lower at 1,425.10, compared with Friday's Seoul onshore trading close. South Korea's 10-year government bond yield is down 0.6 bp at 2.696%. (kwanwoo.jun@wsj.com)

1950 ET - Japanese stocks may rise following Friday's selloff and after President Trump exempted smartphones and other electronics from his so-called reciprocal tariffs. Nikkei futures are up 1.4% at 33960 on the SGX. USD/JPY is at 143.66, compared with 143.91 as of Friday's Tokyo stock market close. Any developments regarding U.S. tariffs are being closely watched. The Nikkei Stock Average fell 3.0% to 33585.58 on Friday. (kosaku.narioka@wsj.com)

(END) Dow Jones Newswires

April 13, 2025 21:20 ET (01:20 GMT)

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