The Bank of Japan left interest rates unchanged as expected, with the vote split 8-1. The decision comes as the BOJ continues its gradual policy normalization path following its historic exit from negative interest rates earlier in the year, and the dissenting vote signals ongoing internal debate over the pace of further tightening.

The latest regional data showed China's July manufacturing PMI at 49.2, below the 50.0 expected, keeping the sector in contraction territory and reinforcing concerns about the momentum of China's economic recovery. Australia's second-quarter producer price index rose 3.6% versus the prior 3.0%. In Japan, June preliminary industrial production increased 1.3% month on month, ahead of the 0.7% forecast. Japan's unemployment rate held at 2.5%, in line with expectations, while Tokyo July CPI excluding fresh food rose 1.9% year on year, above the 1.7% expected. Tokyo's inflation print is closely watched as an early indicator of nationwide price trends, and the upside surprise keeps pressure on the BOJ to consider further rate moves in coming meetings.

Elsewhere, South Korea also intervened in the foreign exchange market on Thursday. New Zealand consumer confidence rebounded to 99.3 from 91.3. Treasury Secretary Bessent also appeared to endorse yen intervention, a notable stance as sustained yen weakness above 160 against the dollar has drawn repeated official action and remains a flashpoint for global currency markets.

Markets were mixed. WTI crude fell $1.25 to $82.36, US 10-year yields were down 1 basis point at 4.65%, and gold dropped $26 to $4,075. The US dollar led, while the yen lagged. S&P 500 futures rose 0.3%, and the South Korean Kospi was up 14%.

It was a busy session across global markets. Trading remained influenced by the post-FOMC backdrop, while earnings continued to drive large moves in several major US technology names. Amazon shares surged, while Apple declined. In the US, the bigger development was that the Situational Awareness hedge fund was forced to fire-sale its public equities to Citadel. After that disclosure, markets appeared to find a bottom, with sharp rallies in chip stocks and other holdings linked to the fund, including SK Hynix. Given the fund's large Korean exposure and the earlier rout in Korean stocks, South Korean equities staged a strong rebound to finish a volatile week.

Japan also entered the FX spotlight during US trading hours, pushing USD/JPY lower ahead of the BOJ decision. But the pair quickly recovered in Asia, rising 113 pips, moving through 160.00, and then adding another 63 pips. The US did not push back against the move, and Bessent appeared to endorse yen intervention.

China's official PMI readings were softer than expected, but Chinese technology shares posted solid gains, matching the frenetic trading seen in other parts of the market. Overall, the session reflected a clear shift in market tone as some of the major risks faded, raising the possibility of a momentum trade in August.

Have a great weekend. Eamonn will be back next week.