Currency markets opened the European morning in a consolidative mood, though the Japanese yen stood out as the only G10 currency advancing against the US dollar after being the weakest performer a day earlier. The broader tone remains cautious, with limited follow-through in most majors. The clear exception is China’s yuan, which extended its rally for a tenth straight session, marking its longest winning streak since 2010 and reaching its strongest level since April 2023, underscoring persistent upward momentum.

Asia Pacific Markets

Equity performance across Asia Pacific was uneven. Tokyo shares climbed to fresh highs, while mainland Chinese and Hong Kong stocks experienced profit-taking. South Korea’s Kospi surged 3.65%, bringing its year-to-date advance close to 49.7%. In currency trading, the offshore yuan strengthened for a fifth session, after a nearly 0.40% jump previously. The People’s Bank of China set the dollar’s reference rate at CNY6.9228, reinforcing the perception that authorities are maintaining a firm stance on the currency.

European Markets

In Europe, the euro remained resilient within its recent band, pushing above its five-day moving average for the first time since mid-February before encountering resistance near this week’s peak. Sterling briefly reached a new six-session high ahead of a special election in Gorton and Denton, though it later eased. The Stoxx 600 edged higher for a third straight session, while regional bond yields showed minimal movement.

American Markets

Attention in North America centers on US weekly jobless claims, expected to stay below the four-week average of 219,000, alongside the Kansas City Fed’s February manufacturing survey. Federal Reserve officials Miran and Goolsbee are scheduled for television appearances, and Governor Bowman will testify before the Senate Banking Committee on Regulation. Treasury auctions include bills and $44 billion in seven-year notes. In commodities, gold is consolidating within a narrow range, while April WTI crude has slipped to a six-session low near $64.20.