0743 GMT - The dollar trades steady as investors digest conflicting news over the Middle East conflict. President Trump said he was extending the pause on striking Iranian energy infrastructure for 10 days. Trump said the extension was at Iran's request but Iran denied asking for additional time. Moreover, The Wall Street Journal reports that the Pentagon is looking to send up to 10,000 additional troops to the Middle East to give Trump more military options. More concrete signs of talks would be taken positively by investors but "they also have to grapple with the potential for further escalation," Deutsche Bank analysts say in a note. The DXY dollar index trades flat at 99.935. (renae.dyer@wsj.com)

0727 GMT - Malaysia's consumer sector outlook might remain solid, as domestic consumption fundamentals are expected to stay intact, MBSB Research says in a note. The outlook is supported by stable employment, manageable core inflation, continued fiscal support under government cash-aid programs and improving tourism flows amid the government's tourism campaign, it says. While the escalation in the Middle East has introduced a more tangible cost headwind, MBSB believes structural tailwinds supporting consumer spending remain sufficient to sustain a constructive sector outlook for now. MBSB maintains its positive rating on Malaysia's consumer sector, pegging Leong Hup International, Mr. D.I.Y. Group (M) and 99 Speed Mart Retail as its top picks due to their defensive nature and resilient earnings. (yingxian.wong@wsj.com)

0724 GMT - Singapore's manufacturing sector is likely to be supported by artificial intelligence-related server and data center demand in the near-term, CGS International economists say in a note. Electronics output is expected to remain driven by structural technology demand, while pharmaceutical output could remain volatile due to the inherent lumpy production cycles. However, geopolitical tensions could weigh on manufacturing activity through weaker external demand, supply chain disruptions, and higher input costs, the economists caution. CGS International maintains Singapore's manufacturing output growth forecast for 2026 at 5.0%.(amanda.lee@wsj.com)

0721 GMT - Singapore could move up the gold value chain and turn into an active trading and clearing center for gold-related products, says DBS's Jacky Tai in an email. Singapore's central bank and its precious-metals industry association are looking to strengthen the city-state's gold-trading appeal. Creating an ecosystem spanning capital-market instruments and physical infrastructure could deepen the market's liquidity, he says. Singapore potentially offering vaulting services to foreign central banks and sovereign entities also underpins the city-state's appeal as a well-regulated jurisdiction, he adds. DBS, part of the central bank's gold market development group, is also exploring how "innovative solutions that leverage new technology" can be applied to gold-related capital market products, he adds, noting rising interest in Singapore-based physical gold capabilities. (megan.cheah@wsj.com)

0704 GMT - The risk of the Middle East conflict escalating over the weekend have subsided with U.S. President Trump's next ultimatum extension, says Commerzbank's Christoph Rieger in a note. Trump extended the pause on strikes on Iran's energy sector for 10 days so peace negotiations can take place, while the U.S. weighs sending another 10,000 troops to the Middle East, according to The Wall Street Journal. "However, the muted market reaction in Asia underscores that a deal over the next 10 days has not become more likely with Trump just seen buying time to deploy more troops," says the head of rates and credit research. (emese.bartha@wsj.com)

0655 GMT - U.S. Treasury yields rise in Asian trade as oil is little changed on the day. "Amid the lack of more tangible news regarding a de-escalation in the Middle East, the market is likely to remain cautious ahead of the weekend," Danske Bank's Jens Naervig Pedersen says in a note. U.S. President Trump's decision to extend the deadline for strikes on Iranian infrastructure to April 6 had only a short-lived impact. The two-year Treasury yield is up 0.6 basis points at 3.988%, the 10-year yield rises 1.8 basis points to 4.433%, while the 30-year yield rises 2.3 basis points to 4.959%, according to Tradeweb. (emese.bartha@wsj.com)

0644 GMT - Markets are now expecting as many as three rate hikes each from the Bank of England and the European Central Bank, and "this is a remarkable turn of events in just a matter of weeks," says Federated Hermes' Mitch Reznick in a note. Markets currently also price in about half a rate hike by the Federal Reserve this year, according to LSEG. "The selloff in the front end of the [bond yield] curve has caused dramatic bear flattening," the group head of fixed income says, referring to a faster rise in short-end bond yields than long-end yields. Concerns about inflation and, as a consequence, central-bank rate activity, appear to have eclipsed worries about the effects of rising geopolitical risks on the back of the U.S. conflict with Iran, he says. (emese.bartha@wsj.com)

0634 GMT - Markets seem to be near levels "where people are comfortable to wait out the next move in Iran," says Navellier & Associates' Louis Navellier says in a note. There is some comfort in comments from U.S. President Trump which suggests he sees the damage to markets as "more an unavoidable price to pay in the short term to eliminate a serious threat in the long term," he says. In Asian trading hours, Brent oil is marginally lower at $107.73, while U.S. Treasury yields show signs of tentative stabilization, trading only slightly higher. The two-year yield is up 0.6 basis points at 3.988%, while the 10-year yield rises 1.2 basis points to 4.427%, according to Tradeweb. (emese.bartha@wsj.com)

0629 GMT - Sentiment among large Japanese manufacturers is expected to climb to plus 17 in the Bank of Japan's quarterly Tankan survey due next week, up from plus 15 in the December data, according to a poll of economists by data provider Quick. Daiwa Institute of Research economist Kanako Nakamura expects the business mood among manufacturers to improve, buoyed by the yen's weakness and solid chip-related demand. However, the outlook for large manufacturers is clouded, with sentiment expected to worsen across a wide range of industries amid heightened caution over tensions in the Middle East. (megumi.fujikawa@wsj.com)

0619 GMT - Most Asian currencies weaken against the dollar in the afternoon session in Asia. The Pentagon is considering sending up to 10,000 additional ground troops to the Middle East to give President Trump more military options, the WSJ reported, citing Department of Defense officials. "Trump continues to send troops to the Gulf region," Maybank analysts say in an FX research & strategy report. "Markets are still anxious about a possible ground invasion of Iran that could prolong this war," they add. The dollar rises to record highs versus the Indian rupee and Philippine peso, LSEG data show. The dollar is up 0.4% at 94.6230 rupees after touching 94.7060 rupees; the dollar gains 0.3% to 60.335 pesos after touching 60.413 pesos. (ronnie.harui@wsj.com)

0614 GMT - Generali Asset Management affirms its neutral view on U.S. rates, although levels close to 4.50% [in 10-year U.S. Treasury yield] could justify a more constructive stance, says Mauro Valle, head of active fixed income. In terms of portfolio positioning, Generali AM maintains a neutral view on Bunds. "We are monitoring whether oil prices stabilize, and whether the European Central Bank expectations will converge to a softer scenario of two hikes, in which case the 3.0% level [in 10-year Bund yield] could again offer an attractive entry point for adding duration," he says. The 10-year Treasury yield rises 1.6 basis points to 4.430% in Asian trade, while the 10-year Bund yield closed at 3.067% on Thursday, according to Tradeweb. (emese.bartha@wsj.com)
source: https://www.tradingview.com/news/DJN_DN20260327001751:0/