Yen Weakens After U.S.-Japan Intervention; Dollar Nears Two‑Week High Amid Oil Decline

U.S. equity futures opened higher on Monday, with the S&P 500 futures up 0.6 %, the Dow Jones Industrial Average futures climbing 1.1 %, and Nasdaq futures gaining 0.3 % before the market opened. The rally was buoyed by a sharp drop in oil prices following President Donald Trump’s announcement that U.S. forces would refrain from attacking Iran and that a cease‑fire deal was close.

Brent crude fell 4.9 % to $83.66 a barrel, while U.S. benchmark crude slid 5.8 % to $79.81. The slide marks another swing in prices that has been driven by the ongoing conflict in the Middle East and Trump’s shifting comments.

In Asia, the Nikkei 225 slipped 0.9 % to 63,754.90 after the U.S. and Japan confirmed a coordinated intervention to support the yen. The dollar fell to 155.20 yen early in Tokyo, and by late Monday had weakened further to 156.79 yen. The intervention, which involved the U.S. Treasury buying yen through the Federal Reserve Bank of New York, signals Washington’s willingness to back Tokyo in defending the currency.

The weaker yen has lifted the earnings of Japanese firms with overseas operations and attracted foreign tourists, but it also raises the cost of imported goods such as oil. Meanwhile, the stronger dollar has been praised as a safe‑haven asset, though a softer dollar could improve U.S. export competitiveness.

South Korea’s Kospi dropped 5.1 % to 6,257.45, after a record 17.9 % rally on Friday. Shares of Samsung Electronics and SK Hynix, which drove the Friday surge, fell 8.8 % on Monday.

Hong Kong’s Hang Seng index gained 0.5 % to 26,009.40, while Shanghai’s Composite fell 0.6 % to 3,809.66.

Across Europe, Germany’s DAX rose 1.5 %, France’s CAC 40 climbed 1.1 %, and Britain’s FTSE 100 edged up 0.2 % by midday.

The week ahead will see a flurry of U.S. labor market data, adding further focus to the markets as they navigate the intersection of geopolitical tensions and economic indicators.