Asian markets displayed a muted performance on Tuesday, June 25th, while the Japanese Yen weakened further against the Euro, reaching a record low (link: [https://www.investing.com/news/stock-market-news/asian-shares-subdued-yen-hits-record-low-versus-euro-3494839]). Let's delve into the factors contributing to this market sentiment.

A Cautious Calm in Asia:

• Asian stock markets largely traded sideways, lacking a clear direction due to several upcoming events:
  • Key US data release: Friday's US inflation data is a major focus, potentially influencing global market sentiment.
  • Upcoming elections: The first US presidential debate on Thursday and the first round of French elections over the weekend are adding to investor caution.

Yen Feels the Heat:

• The Japanese Yen weakened further against the Euro, reaching a record low. This depreciation is likely due to:
  • Widening monetary policy gap: The Bank of Japan (BOJ) maintains its ultra-loose monetary policy, while other central banks are considering tightening measures. This makes the Yen less attractive to investors seeking higher returns.
  • Intervention threats: Despite recent intervention from Japanese authorities to stem the Yen's decline, the currency continues to weaken.