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

2023 ET - Japanese stocks are higher as concerns about higher energy costs ease following declines in crude oil prices overnight. Electronics and financial stocks are leading gains. Hitachi Ltd. is up 1.3% and Advantest is 2.0% higher while Tokio Marine Holdings is up 1.6% and Japan Post Bank is 1.2% higher. The dollar is at 157.86 yen, compared with Y157.79 as of Monday's Tokyo stock market close. Investors are closely watching any developments in the Middle East conflict, crude oil prices and bond yields. The Nikkei Stock Average is up 0.4% at 70251.44. (kosaku.narioka@wsj.com; @kosakunarioka)

1943 ET - Japanese stocks may remain rangebound as concerns about higher borrowing costs offset enthusiasm over rising artificial intelligence-related demand. Nikkei futures are flat at 70175 on the SGX. The dollar is at 157.88 yen, compared with Y157.79 as of Monday's Tokyo stock market close. Investors are focusing on any developments in the Middle East conflict, crude oil prices and bond yields. The Nikkei Stock Average rose 2.4% to 69946.86 on Monday. (kosaku.narioka@wsj.com)

1743 ET - Australian equities are poised to open higher with ASX 200 futures up 27 points or 0.3%. Local investors are taking their cue from another record-breaking session on Wall Street, where relentless momentum across technology and artificial intelligence infrastructure continues to outrun bond market headwinds, says NAB in a note to clients. A slide in Brent oil futures to $100 per barrel is providing additional relief, it adds. Big tech remains the primary engine of global market optimism, NAB says. (james.glynn@wsj.com; @JamesGlynnWSJ)

1733 ET [Dow Jones]--Australian equities are poised to open higher with ASX 200 futures up 27 points, or 0.3%. Local investors are taking their cue from another record-breaking session on Wall Street, where relentless momentum across technology and artificial intelligence infrastructure continues to outrun bond market headwinds, says NAB in a note to clients. A slide in Brent oil futures to $100 per barrel is providing additional relief, it adds. Big tech remains the primary engine of global market optimism, NAB says. (james.glynn@wsj.com; @JamesGlynnWSJ)

1552 ET - Treasury yields rise as markets expect the Fed to keep rates elevated while long-term inflation remains a concern. September ISM services PMI slows to 54.9 from 55.4, but it stays above the 50 mark, suggesting economic growth. August trade deficit is expected to widen to $102 billion from $88.6 billion, according a WSJ consensus. The Treasury will auction $58 billion in three-year notes tomorrow. The 30-year yield rises 0.035 percentage point to 5.664%, its highest settlement since May 2002. The 10-year yield adds 0.034 point to 5.310%, its highest close since April 2002. The two-year is little changed, at 4.831%. (paulo.trevisani@wsj.com; @ptrevisani)

1355 ET - Treasury yields keep traveling higher, a symptom of the selling seen in bonds. This dynamic has many investors curbing the riskier investments that they make, which includes cryptocurrencies. That's why bitcoin can't manage to break out of where it's currently rangebound at, says analysts for Bitfinex in a note. America's mounting national debt is also a factor that is spooking traders, says the firm. The firm pegs its support target at $84,000, while resistance is expected to be within $87,000 and $90,000. Bitcoin falls 0.6% to $85,307, ethereum is down 0.2% to $2,700, XRP falls 0.8% to $1.49, and solana is down 1.2% to $119.81. Meanwhile, the 10-year Treasury yield is up 0.067 percentage points to 5.35%. (kirk.maltais@wsj.com)

1309 ET - Fitch Ratings said North American theatrical exhibitors are being supported by improving box office trends and higher spending per patron. However, the sector's structural concerns remain key credit constraints, Fitch added. Structural headwinds including competition from streaming and dependence on film studios for content-supply. But fuller film slates and operating discipline are driving EBITDA growth and deleveraging, Fitch said. Premium large-format screens, attractive locations and strong concession economics put operators in a position to garner more revenue per visit, while smaller, less-well-capitalized operators, or those with inflexible cost structure, are more exposed to gaps in the slate, according to Fitch. (stephen.nakrosis@wsj.com)

1216 ET - Bitcoin is down 0.7% to $85,208, with low demand for the cryptocurrency from investors offsetting any positive momentum coming from reduced odds for an interest rate hike at the Federal Reserve's next meeting at the end of the month, says analysts for Bitget Wallet in a note. "A convincing move higher would require sustained ETF inflows, stronger spot buying and a daily or weekly close above roughly $87,400," says Lacie Zhang of Bitget Wallet. If the token can maintain these conditions, then prices could rise to above $90,000, said Zhang. Bitcoin ETFs ended last week with two straight days of ETF inflows, according to data from Coinglass. (kirk.maltais@wsj.com)

1140 ET - The September ISM services survey highlights the Federal Reserve's dual mandate tensions. In the survey, the 'prices paid' index rose to its highest level since July 2022. "The ISM nonmanufacturing survey underscores the need for the Federal Reserve to raise rates in October and December as it seeks to unwind the rate cuts from 2025," a note from Oxford Economics said. Along with intensifying price pressures, the supplier deliveries index signaled slower delivery times, or additional supply stress. Meanwhile, Oxford Economics said the employment and business activity components point to a stable labor market. (jessica.coacci@wsj.com)

1105 ET - Bitcoin's strong year-over-year returns are more linked to single days of strong moves, according to Zach Pandl of Grayscale in a note. Pandl says removing bitcoin's five best trading days reduces its three-year return from 225% to 95%, with the return falling to 27% without its 10 best days. If you remove the top fifteen days, it turns a three-year gain into an 11% loss. By comparison, removing the Nasdaq's fifteen best days reduces its cumulative return from 109% to 21%. "Given BTC's return and volatility profile, investors looking for long-term capital appreciation can avoid trying to time the market and instead seek consistent, long-term exposure to the asset," Pandl says. Bitcoin is down 0.2% to $85,610, while ethereum falls 0.2% to $2,701. (kirk.maltais@wsj.com)

1100 ET - Political risk in Spain after snap elections were called could add to selling in eurozone government-bond markets, prompted by concerns over France's indebtedness and fragmented politics, says Aberdeen's Lizzy Galbraith in a note. "Spain has not been the epicentre of this episode, but its cost of borrowing has started to rise in sympathy with sharper moves in France and Italy." Spain's comparatively favourable debt dynamics leave its bond markets less exposed than France or Italy, however, Galbraith says. Spain's Prime Minister Pedro Sanchez called for elections next month following housing crisis protests. Ten-year Spanish government-bond yields rise 3.9 basis points to 4.123%, according to Tradeweb. They hit 4.219% on Friday, the highest since December 2013. (jessica.fleetham@wsj.com)

1044 ET - The Brazilian real strengthens 4.5% against the dollar and the Ibovespa stock index rises 9% after Sunday's right-wing surprise in the first round of general elections. Conservative Flavio Bolsonaro pulls ahead of leftist incumbent Lula da Silva and both are heading for a runoff on October 25, with the son of former president Jair Bolsonaro carrying momentum. A slew of conservative candidates wins seats across Congress and state governorships. The results fuel hopes among investors of fiscal austerity to rein in widening fiscal deficits, which could make it easier for the central bank to lower interest rates.