Bond markets gained and the momentum of a recent stock rally slowed Wednesday following weaker-than-anticipated U.S. Retail sales data, while the yen continued its ascent, prompting speculation about a potential shift in investor sentiment following Japan’s recent election. U.S. Employment figures are scheduled for release later today, and analysts suggest the possibility of downward revisions to previously reported numbers is contributing to dollar weakness.
The yen has appreciated approximately 2.5% against the dollar since Sunday’s election victory of Prime Minister Sanae Takaichi, a result that surprised some observers who anticipated concerns over her economic stimulus proposals would weigh on the currency and bond markets. Trading volumes were subdued in Asia due to a public holiday in Japan.
“To be long yen, you need to believe that the correlation to Nikkei will break and it becomes an unhedged ‘buy Japan’ trade,” said Brent Donnelly, founder of analytics firm Spectra Markets. “That’s possible. I just think the jury’s still out.” Traditionally, the yen weakens when Japanese stock markets rise, and recent sessions have seen Japan’s stock market reach record highs in anticipation of government economic support.
Nikkei futures indicated a positive opening Wednesday, despite the cash market being closed for the holiday. Gold prices rose above $5,000 an ounce, and Treasury futures likewise edged higher. Benchmark 10-year U.S. Treasury yields fell nearly six basis points Tuesday, reaching a one-month low of 4.14% after data revealed a 0.1% decline in core U.S. Retail sales in December, with downward revisions to November and October figures also reported.
The Shanghai Composite index closed at 4,131.98, a gain of 0.09% on Wednesday, February 11, 2026. The index has experienced volatility in recent weeks, with a high of 4,190.87 and a low of 3,040.69 over the past 52 weeks.
The S&P 500 closed 0….
