Asia closed broadly lower as a surging yen and firming Treasury yields squeezed risk appetite, leaving US futures flat into this morning's producer price print.
Tokyo's Nikkei 225 slipped roughly a quarter percent to just under 65,000, unwinding an early bid as USD/JPY buckled toward 153 on Bessent's warning against short-yen bets and mounting conviction the BOJ hikes next week. Hang Seng led the region lower, down about 1.3% near 24,950 on broad tech and energy weakness, while the CSI 300 and Shanghai Composite eased roughly half a percent as mainland flows stayed defensive. Seoul's Kospi cooled to just above 7,030, a rare pause after this week's blistering Samsung/SK Hynix-led surge that briefly pushed the index up nearly 5% in a single session.
Stateside, futures sit close to flat, Dow modestly higher, Nasdaq slightly softer, after Wednesday's gain on a soft ADP print and dovish Williams commentary, with the desk squarely focused on 8:30am ET PPI and jobless claims ahead of tomorrow's CPI. Brent above 102 and the 10-year holding near 4.85% keep the bond-versus-stocks tug of war alive; a hot PPI reopens the reflation trade and pressures the long end further, while a soft print lets equities extend Wednesday's bounce.
The risk: a PPI beat paired with USD/JPY snapping back above 155 revives the carry-unwind fear that hit Asia earlier this year, dragging US tech lower into the print; a cool PPI with BOJ hike chatter staying contained instead lets dip-buyers push SPX back toward the highs.