[Japan Market Conditions] The yen reached a one-month high, wary of the US employment statistics - stocks fall and bonds rise.

Updated: September 6, 2024, 16:17 JST (excerpt)
In the Japanese market on the 6th, the yen exchange rate rose to around 142 yen to the dollar, the highest level in about a month. Ahead of the highly anticipated release of US employment statistics, concerns about the deterioration of the labor market and caution about a significant interest rate cut by the Federal Reserve Board (FRB) remained strong, leading to yen buying and dollar selling.
The stock market fell, mainly in export-related stocks such as electronics and machinery, due to the headwind of a stronger yen, reaching the lowest level since mid-August. The bond market rose in response to the decline in long-term US interest rates and the results of the Bank of Japan's government bond purchase operations.
The August US employment statistics, which will be announced on the 6th, may determine the extent of the expected interest rate cut at this month's Federal Open Market Committee (FOMC) meeting, and market attention is higher than usual. In the previous announcement, concerns about the risk of a slowdown in the US economy increased as the unemployment rate worsened unexpectedly, causing financial market instability. In addition, the Bank of Japan raised interest rates at the end of July, which led to a sharp appreciation of the yen and a historic plunge in Japanese stocks. Traders are bracing themselves for new risks.