Asian share indices hold gains on Friday, though they remain on track for weekly losses as pressure on global bond yields eases. US Treasury yields resumed their upward trajectory following a brief reprieve triggered by Wednesday’s unexpected Treasury intervention.

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) declined 0.5% month-over-month (MoM) in July after rising by 0.7% in June (revised from 1.0%), the latest data published by the Office for National Statistics (ONS) showed on Friday.

The Indian Rupee (INR) edges down against the US Dollar (USD) in the opening session on Friday. The USD/INR ticks up to near 95.72 as elevated oil prices and a sharp recovery in United States (US) Treasury Yields have weighed on the Indian currency.

The preliminary reading of India’s HSBC Manufacturing Purchasing Managers Index (PMI) declined to 52.9 in August versus 53.5 prior, the latest data published by S&P Global and HSBC Bank showed on Friday. 

USD/IDR extends its losses for the third successive day, trading around 17,760 during the Asian hours on Friday. The currency pair continues to depreciate as the Indonesian Rupiah (IDR) maintains its strength, defying a sharp widening of Indonesia’s current account deficit.

Netherlands, The Consumer Confidence Adj: -34 (August) vs -35

The GBP/USD pair gathers strength near 1.3645 during the early Asian trading hours on Friday. The US Dollar (USD) softens against the British Pound (GBP) amid fading Federal Reserve (Fed) rate hike expectations.

Japan Jibun Bank Manufacturing PMI meets expectations (55.1) in August

Japan Jibun Bank Services PMI increased to 52.3 in August from previous 51.2

US Treasury Secretary Scott Bessent said that the US President Donald Trump administration’s plan to crush Iran’s economy will likely negate the need for major US military operations against the Islamic Republic, CNBC reported on Thursday.

Japan’s National Consumer Price Index (CPI) climbed by 2.0% YoY in July, compared to the previous reading of 1.7%, according to the latest data released by the Japan Statistics Bureau on Friday.

South Korea Producer Price Index Growth (MoM) down to -0.4% in July from previous 0%

South Korea Producer Price Index Growth (YoY) declined to 7.7% in July from previous 8.6%

DBS strategist Chang Wei Liang reports that South Korean Won (KRW) strength has resumed, with USD/KRW dropping to the mid-1380s even as KOSPI fell nearly 6% on semiconductor-led losses.

OCBC strategists Sim Moh Siong and Christopher Wong note that Indonesian Rupiah (IDR) should find some relief from a softer Dollar and lower long-end US yields, with BI keeping its policy rate at 5.75% and focusing on currency stability.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note that USD/SGD extended its overnight slide as the US Dollar (USD) sell-off pushed the pair back toward the 1.27 area.

Federal Reserve Bank of St. Louis President Alberto Musalem is crossing the wires with remarks on the economy and the monetary policy outlook, speaking in an interview with CNBC on Thursday.

United States 4-Week Bill Auction increased to 3.64% from previous 3.625%

United States (US) Treasury Secretary Scott Bessent said on Thursday that the Treasury could increase bond buybacks beyond $4 billion, partly to signal that current yields do not reflect underlying economic fundamentals. He stressed that interest rates have nothing to do with the buyback decision.

DBS Group Research economist Radhika Rao notes Bank Indonesia (BI) kept its policy rate at 5.75% with Acting Governor Destry maintaining a neutral bias while flagging global risks. A strong domestic growth print and Indonesian Rupiah (IDR) stability underpin the decision.

Commerzbank’s Moses Lim highlights that Bank Indonesia left the BI Rate at 5.75%, balancing inflation, growth and IDR stability after earlier hikes. BI has expanded hedging incentives and CNY clearing to support inflows and FX stability, while keeping SRBI yields from rising further.

The Indian Rupee (INR) is balancing solid macroeconomic fundamentals and massive central bank reserves against renewed hawkish undertones from the Reserve Bank of India (RBI).

In an interview with Bloomberg TV on Thursday, Federal Reserve (Fed) Bank of San Francisco President Mary Daly argued that the rise in long term Treasury bond yields is a global issue and added that she doesn't see the Fed's credibility at risk.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance shrunk to 206K for the week ending August 15.

ING’s Padhraic Garvey analyses how the US Treasury’s decision to double buybacks in 10-30 year maturities affects long-end US Treasuries. He stresses that while the programme is sizeable and could be expanded again, it mainly mutes, rather than reverses, upward pressure on long yields.

Nomura’s European Economics team, led by Josie Anderson, George Buckley and Andrzej Szczepaniak, reviews the latest Riksbank decision to keep the policy rate at 1.75%.

Chang Wei Liang at DBS Group Research highlights that EUR/USD has rallied toward 1.17, with the Euro the main beneficiary of Dollar softness.

Commerzbank economist Bernd Weidensteiner analyzes recent U.S. employment trends, noting that Nonfarm Payroll growth has slowed sharply, with average monthly gains of just 32,000 over the past year.

Radhika Rao at DBS Group Research highlights that Reserve Bank of India (RBI) minutes from the early-August meeting were more cautious than Governor Sanjay Malhotra’s public messaging.

MUFG’s research team uses AI-driven textual analysis to judge the July FOMC minutes as slightly more hawkish, with broader support for a rate hike and concern over inflation expectations.