The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0243 GMT - The Singapore dollar consolidates against its U.S. counterpart, but may be weighed by rising oil prices that typically lead to higher inflationary pressures in the region. "Escalation in U.S.-Iran attacks on shipping and renewed strikes on Saudi [Arabia's] energy infrastructure raised concerns over further disruption to Middle East supply," OCBC Group Research's Christopher Wong says in a research report. A sustained move by Brent crude oil price above the $100 per barrel level would "reinforce inflation and rates risks and could become a larger headwind for oil-importing" Asia ex-Japan countries, the FX strategist adds. The U.S. dollar is little changed at 1.2638 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)

0214 GMT - The Bank of Japan is likely to accelerate the pace of rate increases to deal with upside risks in inflation, but probably not as fast as some market participants anticipate, Morgan Stanley MUFG Securities economists say. The brokerage expects the BOJ to raise its policy rate to 1.25% from 1.00% next week and projects another 25bp increase in January 2027. Some forecast a 50bp increase next week or additional increases in October and December. Yet, it is difficult for the central bank to build a case for a 50bp increase, considering recent economic and inflation data and market conditions, the brokerage says. Uncertainty has risen again over the Middle East conflict and downside risks to the Japanese economy have also increased, the brokerage adds. (kosaku.narioka@wsj.com; @kosakunarioka)

0151 GMT - The U.S. Dollar Index could rebound in the near term, as U.S. PPI and CPI data loom, StoneX's Matt Simpson says in commentary. "The stage is set for a potential catalyst, particularly if inflation data surprises to the upside," the senior market analyst says. "With the U.S. Dollar Index having already fallen sharply, even a modest upside surprise in PPI or CPI could provide the excuse for a near-term rebound in" the index, Simpson adds. U.S. PPI and CPI reports are due out today and Friday, respectively. The U.S. Dollar Index is little changed at 98.792, LSEG data show. (ronnie.harui@wsj.com)

0146 GMT - Bitcoin falls in Asia trade. U.S. government bond yields climbed to fresh multiyear highs on Wednesday after the Treasury Department said it would repurchase up to $6 billion of longer-term debt at its Thursday buyback operation. Markets responded by moving money out of riskier assets including cryptocurrencies like bitcoin, which had been in positive territory before the announcement. Bitcoin is also being weighed by the unrelenting rise in energy prices, the selloff in U.S. equities and higher bond yields, IG market analyst Tony Sycamore says in a note. Bitcoin is 0.3% lower at $78,090.71.(amanda.lee@wsj.com)

0018 GMT - JGBs fall in early Tokyo trade, tracking overnight price declines in U.S. Treasurys. JGBs and Treasurys tend to move in tandem. "Rising oil prices and disappointment in the U.S. buyback announcement weighed on government bonds," NAB's Sally Auld says in commentary. "The scale of the expanded operation appeared to disappoint the market," the group chief economist adds. The Treasury Department said it would repurchase up to $6 billion of longer-term debt at a buyback operation on Thursday. The 10-year JGB yield rises 3 bps to 2.910%, the 20-year yield adds 3 bps to 3.730% and 30-year yield gains 3 bps to 3.985%. (ronnie.harui@wsj.com)

0014 GMT - Japanese stocks are lower in early trade on rising concerns over the Iran war and higher energy costs. Construction and retail stocks are leading the declines. Taisei is down 4.9% and Ryohin Keikaku is 2.4% lower. The dollar is at 153.49 yen, compared with Y153.15 as of Wednesday's Tokyo stock market close. Investors are closely watching developments in the Middle East and oil prices after Brent crude topped $100 a barrel for the first time since July. The Nikkei Stock Average is down 0.6% at 64759.80. (kosaku.narioka@wsj.com; @kosakunarioka)

0002 GMT - The yen consolidates against the dollar and other currencies ahead of BOJ policy board member Kazuyuki Masu's speech due later today. Masu is scheduled to meet with local leaders in Fukui, Japan. "Market participants will closely watch whether Masu validates the market's recent sharp upward reassessment of the BoJ's policy outlook," CBA's Carol Kong says in a research report. "We now expect the BoJ to raise its policy interest rate by 25bp next week," the economist and currency strategy adds. The U.S. dollar is little changed at 153.54 yen while the Australian dollar edges 0.1% lower to Y110.83, LSEG data show. (ronnie.harui@wsj.com)

2345 GMT - Japanese stocks may fall as fears about the Iran war and higher energy costs grow. Nikkei futures are down 1.2% at 64355 on the SGX. The dollar is at 153.37 yen, compared with Y153.15 as of Wednesday's Tokyo stock market close. Investors are focusing on developments in the Middle East and oil prices after Brent crude topped $100 a barrel for the first time since July. The Nikkei Stock Average fell 0.2% to 65142.78 on Wednesday. (kosaku.narioka@wsj.com)

2339 GMT - The Australian dollar briefly touched 72.38 U.S. cents in recent hours, its highest level since the middle of May. The currency is being supported by the prospect of additional tightening by the Reserve Bank of Australia and a broadly weaker U.S. dollar, says Carol Kong, an FX strategist at CBA. The next resistance can be found at 72.78 US cents, she adds. Markets interpreted RBA Deputy Governor Andrew Hauser's comments on Tuesday about inflation risks as tilting toward another imminent hike, with a rise in the official cash rate on September 28 now 70% priced in, Kong says. (james.glynn@wsj.com; X @JamesGlynnWSJ)

2220 GMT - Metcash's latest trading snapshot looks mixed to Jefferies. Sales were solid, up 2.8% in the first 18 weeks of FY27 when tobacco is excluded. Analyst Michael Simotas is pleased with the performance of Total Tools and Hardware, given a challenging housing market. Still, the headwind to profit margins in food was disappointing. "Food is rarely smooth sailing for Metcash," Jefferies says. "But we expect continued sales improvement from food inflation, Aldi's strategic pivot and reducing tobacco headwind." Jefferies retains a buy call on Metcash, noting it's doing better than its price-to-earnings multiple of 12x suggests. Its price target eases 2.9% to A$3.40/share, but stays above Metcash's closing price of A$2.87 on Wednesday. (david.winning@wsj.com; @dwinningWSJ)

2134 GMT - Mexico's 2027 federal government budget proposal includes transfers of around $4.5 billion to Pemex for debt payments, which puts off plans for the state oil company to be financially self-sufficient by next year. "The lower budget support is an improvement over 2026, but doesn't break the financial link to the sovereign or show that Pemex can finance its operations, investment and financial obligations by itself," analysts at Banamex say in a note. The budget plan sees production of liquid hydrocarbons unchanged from 2026 at 1.8 million barrels a day, while crude oil exports are expected to fall to 426,600 b/d from 522,400 b/d this year. Mexico's average crude price is seen at $61.80 a barrel, down from an estimated $78.40 a barrel for 2026.(anthony.harrup@wsj.com)

2053 GMT - The Mexican government's 2027 budget proposal makes "realistic assumptions" about growth and public finances while capturing "the limits of fiscal consolidation amidst a low-growth environment," Barclays analysts say in a note. The Finance Ministry assumes GDP growth of 2% next year, up from 1.5% in 2026. The public sector deficit is expected to narrow to 3.9% of GDP from 4.1% this year. Public sector debt is projected to rise to 55% of GDP from 54% at the end of 2026. "Mexico is likely to keep its investment grade status in the coming years given the Mexican economy is now growing above 1%--one of the rating agency warning thresholds--and is projected to do so (even more) in the next few years," Barclays says.