Market Talks covering the impact of U.S. Politics and White House policies on companies and markets. Published exclusively on Dow Jones Newswires throughout the day.

0106 ET - The yen's downward trend is likely to continue amid fiscal concerns, unless the Japanese government carries out actual currency intervention, Mitsubishi UFJ Morgan Stanley Securities strategists say in a note. The brokerage expects the yen to reach 160 against the dollar by the end of the year. The pair currently trades around 156.55. Now that Japan's election is over, the market's focus is shifting to the U.S. economy, the strategists say. "We could see a scenario where selling pressure on the dollar intensifies if policy uncertainty surrounding the Trump administration or concerns over a U.S. economic slowdown mount," they add. (megumi.fujikawa@wsj.com)

0001 ET - Long-dated JGB yields could face upward pressure on Japanese PM Sanae Takaichi's landslide election win, Invesco's David Chao says in an email. "More proactive fiscal spending aimed at reflating the economy could increase both fiscal and inflationary risk," the global market strategist for Asia Pacific says. From a JPY viewpoint, some near-term volatility is expected as markets assess implications of the LDP's landslide victory for currency dynamics. With the Fed on hold and the BOJ unlikely to raise rates until 2Q, USD/JPY could trade closer to 160.00 again, Chao adds. Yield on 10-year JGB is up 5 bps at 2.280%; USD/JPY is 0.3% lower at 156.70. (ronnie.harui@wsj.com)

2318 ET - Thailand's incoming government is unlikely to change course on FX, regardless of the coalition mix, Goldman Sachs analysts say. GS stays bearish on the baht, expecting the government to continue to aim to curb THB strength. Wider implications will hinge on the post-electoral process: If results are widely accepted, and government operations resume swiftly with a clear mandate, GS tips 2026 economic growth at 1.3% versus an estimated 2.1% in 2025. In this scenario it sees one more rate cut by the Bank of Thailand. If coalition talks drag on, delaying government formation, GS flags downside risks to its growth view as social policies and public capex programs would be put on ice. Prolonged uncertainty could slow private investment, and the BOT could retain a dovish tilt until the situation stabilizes. (fabiana.negrinochoa@wsj.com)

2102 ET - Fiscal implications of Japan's ruling coalition's landslide win in Sunday's lower-house elections are unlikely fully priced by USD/JPY, says Goldman Sachs's Karen Reichgott Fishman in a research report. "A bigger mandate is likely to fuel concerns about the potential path of spending plans, warranting renewed weakness in JGBs and the yen, unless the BOJ were to shift towards faster rate hikes," she says. USD/JPY will likely move toward and through 160 as markets digest the impact of the election results and the mandate for PM Sanae Takaichi, the analyst says. However, "the move may be short-lived or even short-circuited if authorities push back through rate checks or actual intervention," she adds. USD/JPY falls 0.5% to 156.38, LSEG data show. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 09, 2026 01:06 ET (06:06 GMT)

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