Asian equities rallied and yen carry trades were unwound as a result of Thursday’s Goldilocks combination of declining U.S. inflation and a robust employment market.

MSCI’s broadest index of ex-Japan Asia-Pacific equities is projected to have its best week of 2023, while the yen is anticipated to appreciate against the dollar by the most since January.

With 10-year U.S. Treasury rates approaching a one-month low and benchmark Japanese government bond yields reaching a four-month peak, the Japanese yen is strengthening.

The dollar remains feeble against Asia’s other problematic currency, the Chinese yuan, for which the People’s Bank of China has expressed praise.

Important releases today include Euro zone May trade, U.S. export and import prices, and consumer sentiment from the University of Michigan.

The second-quarter profits of JPMorgan Chase, Citigroup, Wells Fargo, and BlackRock will be disclosed. The strike of Hollywood actors and writers will garner widespread attention.