Hang Seng slips on weak China retail sales; USD/JPY near 159.75

The Hang Seng fell at the Asian open after official Chinese retail sales came in below expectations. USD/JPY traded close to 159.75 following the Bank of Japan’s 25-basis-point rate hike to 1% on Monday, a level not seen in about three decades, coupled with an announcement that the planned JGB taper would pause from April 2027.

Hong Kong-listed exporters and retailers led declines after the weaker retail sales print, reflecting concern about domestic demand in China. Market participants positioned cautiously ahead of further Chinese economic releases scheduled later this week.

Price charts show USD/JPY has tested its 20-day moving average twice, on June 12 and June 15. The 159.75 level is a short-term pivot for the pair. A sustained close below 159.75 on an hourly chart would expose support at 159.45 and the 159.10/158.80 area, which aligns with the 50-day moving average. On the upside, the recent intervention level near 160.65 sits between the next resistance cluster and a higher range at about 161.14–161.20.

The broader U.S. dollar index traded softer while holding its 20-day moving average near 99.50. The pound exchanged hands near 1.3412 against the dollar after earlier intraday gains were reversed amid political uncertainty over the U.K. prime minister. The yen weakened to roughly 160.20 per dollar immediately after the BoJ announcement.

U.S. equities posted gains on Monday. The S&P 500 rose nearly 2%, the Nasdaq 100 advanced about 3%, and the Dow Jones Industrial Average hit record highs. Energy names underperformed, with the S&P Energy sector down about 3.6%.

Sovereign bond yields fell as market positioning adjusted. The U.S. two-year Treasury yield eased by two basis points to 4.07%. Germany’s 10-year Bund yield declined around three basis points and the U.K.’s 10-year Gilt fell about one basis point.

Oil prices dropped, with WTI and Brent moving below medium-term supports near $85.50 and $86.25 per barrel. Lower oil pushed gold higher; bullion climbed about 2.1% to $4,308 per ounce but remained below its 20-day moving average at approximately $4,405.

Market attention is focused on upcoming Chinese data and central bank commentary in major economies, which could influence equity, bond and currency flows in the coming sessions.