Bessent in Tokyo Ahead of Xi‑Trump Meet | The Asia Trade 5/12/2026
Speakers
Yujiro Goto
— Head of FX Strategy for Japan, Nomura
Colin Purdie
— Global CIO of Public Markets, Manulife Investment Management
Summary
The episode covers market reactions to the US-Iran ceasefire being on life support, Scott Bessent's visit to Japan to discuss yen and monetary policy, anticipation of the Xi-Trump summit, and the ongoing AI-driven rally in Asian semiconductor stocks. It also previews Australia's budget and housing tax reforms.
- US-Iran ceasefire on 'massive life support,' oil prices elevated.
- Treasury Secretary Bessent meets Japanese officials, yen under pressure.
- BOJ signals possible rate hike in June; yen intervention debated.
- Xi-Trump summit to discuss trade and Taiwan arms sales.
- AI rally continues in Korea and Taiwan semiconductors.
- Australia budget to target housing affordability and inflation.
- SoftBank's Masayoshi Son pursues massive AI data center investments.
- UK PM Starmer faces political pressure, gilts under scrutiny.
Trade Ideas
USD/JPY to 152-153 by year-end
The US dollar will depreciate against the Japanese yen and euro due to the drag from the US attack on Iran and economic policy, while the Bank of Japan may hike rates as early as June, which would add support for the yen. He forecasts USD/JPY at 152-153 by year-end.
Up Next
This Bloomberg Markets video, published May 12, 2026, features Yujiro Goto discussing USD/JPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Yujiro Goto · Tickers: USD/JPY