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

0228 GMT - The South Korean won's recent sharp gains could eventually reverse if the local currency strengthens to 1,250-1,300 won versus the dollar, says Eugene Investment & Securities FX economist YH Cha. South Korea's brisk semiconductor-led exports, large trade surplus and exporters' repatriation of dollar earnings have driven the won to a 23-month high. The dollar is last trading 0.5% lower at 1,338.30 won, its lowest level since October 2024, bringing its three-month loss against the won to more than 12%, according to FactSet data. However, the won remains exposed to the long-term trend of rising overseas investment by Korean individuals and the resulting increase in dollar demand, Cha says. (kwanwoo.jun@wsj.com)

0225 GMT - Japan's wage data released earlier Tuesday clears the way for a Bank of Japan rate increase later this month, Capital Economics says in commentary. The government's preliminary estimate showed that annual growth in labor cash earnings quickened to 4.7% in July from 4.0% in June, the research firm says. Overall, "we remain confident that the BoJ will deliver a 25bp hike at its meeting next week," Capital Economics says. "We also expect the pace of tightening to pick up in the coming months, as the Board presses ahead with a return to neutral," the firm added. (ronnie.harui@wsj.com)

0207 GMT - The latest strength in the yen likely reflects some positioning adjustments ahead of the Bank of Japan's coming meeting, says Michael Wan at MUFG in a note. The yen rose to its strongest level against the dollar since late February on Monday amid holiday-thinned U.S. trading and ongoing market pricing for a faster pace of policy tightening by the BOJ, the analyst says. Markets have largely priced in a 25bps hike at the policy meeting next week and attention is shifting towards the BOJ's communication about the broader path of rate hikes at subsequent meetings, Wan says. MUFG expects the dollar to move towards the low 150s level against the yen over time with the BOJ raising rates in the September and January policy meetings. The dollar is last 0.6% lower at 153.41 yen. (sherry.qin@wsj.com)

0151 GMT - Thailand's consumer price growth could exceed 3.0% in September and remain elevated through 4Q, CIMB economists say in a report. Headline CPI rose 2.53% from a year earlier in August, up from July's 1.95%. Energy prices remain a wild card for Thailand's CPI trajectory, with geopolitical tensions likely keeping domestic retail fuel costs high. Food prices could also rise further, as El Nino is set to be at its strongest in 4Q. CIMB maintains its 2026 headline CPI forecast for Thailand at 2.1%. (amanda.lee@wsj.com)

0135 GMT - No matter where you look in the gold market, the bulls appear to be in charge. "Across positioning, flow, and derivatives data, every signal we track continues to point in the same direction: the market is bullish on gold across all fronts," says Societe Generale. What began as a geopolitical shock has evolved into a broad-based build-up of physical, futures and options bets that span retail investors, professional money managers and derivatives traders, it says. "We are now awaiting August central bank data to confirm whether official-sector demand, a key structural pillar of this bull market, remains as robust as in prior months," says SocGen. Any acceleration or slowdown in central-bank buying could help show how durable the bull run might be, it says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0127 GMT - Bitcoin edges higher in Asia, but remains below the $80,000 mark. Traders are keeping an eye on upcoming U.S. CPI data, which would offer clues about the Fed's interest rate decision next week. Although the prospect of a Fed rate hike has unsettled markets, it is rapidly becoming priced in, says IG's Chris Beauchamp in a note. "What matters for bitcoin traders and investors will be the question of whether this is the first move in a cycle or a one-off," he adds. Higher borrowing rates tend to weigh on risk appetite, dragging cryptocurrencies. Bitcoin is 0.1% higher at $79,344.95.(amanda.lee@wsj.com)

0021 GMT - JGB futures rise in the early Tokyo session as the yen's strength is seen to ease inflationary pressures in Japan. A stronger yen tends to reduce Japan's import prices, which typically leads to lower inflation. Today's focus may also be on Japanese Finance Ministry's auction of about 2.5 trillion yen of five-year sovereign notes. Investors are likely to "take a cautious stance on the auction given the [BOJ's] Sep. [meeting] falls later in the month," SMBC Nikko Securities' Lisa Mochizuki says in a research report. "Against this backdrop, we forecast a somewhat weak auction result," the junior analyst adds. Benchmark 10-year JGB futures are 0.20 yen higher at 126.21 yen.(ronnie.harui@wsj.com)

0010 GMT - Japanese stocks are lower as uncertainty over the Middle East conflict and the Fed policy persists. Electronics, machinery and auto shares are leading declines. Murata Manufacturing is down 4.1%, Mitsubishi Heavy Industries is 2.5% lower and Toyota Motor is down 2.3%. The dollar is at 153.80 yen, down from Y155.69 as of Monday's Tokyo stock market close. Investors are closely watching crude oil prices and bond yields as well as any developments in the Iran war. The Nikkei Stock Average is down 0.6% at 66019.90. (kosaku.narioka@wsj.com; @kosakunarioka)

0010 GMT - The yen strengthens further against the dollar and other currencies in early Asian trade. Sentiment toward the Japanese yen has shifted "materially" over the past week, CBA's Samara Hammoud says in a research report. This reflects "speculation about a potential change in the Government Pension Investment Fund's asset allocation and rising expectations of faster Bank of Japan rate hikes," the international economist and currency strategist says. The U.S. dollar falls 0.4% to 153.76 yen after earlier touching Y153.58, its lowest intraday level since mid-February, LSEG data show. The Australian dollar slips 0.4% to Y110.98. (ronnie.harui@wsj.com)

2345 GMT - Japanese stocks may decline as uncertainty over the Middle East conflict and the Fed policy continues. Nikkei futures are down 0.9% at 65860 on the SGX. The dollar is at 153.96 yen, down from Y155.69 as of Monday's Tokyo stock market close. Investors are focusing on crude oil prices and bond yields as well as any developments in the Iran war. The Nikkei Stock Average rose 2.1% to 66399.84 on Monday. (kosaku.narioka@wsj.com)

2333 GMT - Deputy Governor of the Reserve Bank of Australia, Andrew Hauser, will give a television interview at 0930 GMT. His comments could well lock in market pricing for a further rise in interest rates at the central bank's policy meeting on Sept. 28-29. Hauser has been blunt in warning recently that inflation remains "too high," and the recent run of data has included signs stubborn inflation pressures and strong GDP growth. Hauser's comments are usually direct, but also balanced. A hawkish message is highly likely. (james.glynn@wsj.com; X @JamesGlynnWSJ)

2332 GMT - A flood of Australian confidence data in the coming trading day is set to put a sharp focus on how consumers and businesses are assessing the rising risk of higher interest rates, and the impact of big falls in house prices. All this is happening against the backdrop of elevated oil prices and ongoing international shocks. With the Reserve Bank of Australia warning that inflation is simply too high, some economists expect two more interest rate increases this year. A solid job market has supported spending over recent months.