Yen Strengthens on Inflation Data as Asian Markets Split Ahead of US Jobs Report

Asian equity markets traded mixed as investors awaited the US jobs data, with Hong Kong shares down 3% while other regional indexes were comparatively steady. The yen firmed after inflation figures came in stronger than expected, a move that added to volatility already present in bonds and currencies this week. Japan's economy minister added to the currency story, saying the country does not need excessively loose monetary policy, a comment that pushes back against assumptions the Bank of Japan will keep rates pinned down indefinitely. That stance, paired with the inflation print, is part of what is lifting the yen. The US dollar held steady rather than moving decisively in either direction, leaving the payrolls report as the next clear catalyst. Until that data lands, positioning across the region looks tentative and split by country rather than moving as a single bloc.