Asia markets stumble as Fed rate cut hype reined in
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent after a report on Thursday from the Bureau of Labor Statistics which showed the Producer Price Index increased 0.9 per cent in July on a month-over-month basis, well above economists' expectations.
"What it did was to get rid of all the chat about a 50 basis point cut," said Mike Houlahan, director at Electus Financial Ltd in Auckland.
The market is currently pricing in a 92.1 per cent probability of a 25 basis point rate cut at its September meeting, compared with a 100 per cent likelihood of a cut on Thursday, according to the CME Group's FedWatch tool. The chance of a jumbo 50 basis point cut fell to zero per cent from an earlier expectation of 5.7 per cent a day ago.
US stock futures were flat in early Asian trading after ending a choppy trading session on Wall Street with mild gains on Thursday. The yield on the US 10-year Treasury bond was down 1 basis point at 4.2829 per cent.
The two-year yield, which is sensitive to traders' expectations of Fed fund rates, slipped to 3.7304 per cent compared with a US close of 3.739 per cent. Nasdaq futures extended losses into a third consecutive day, sliding 0.1 per cent lower.
The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, retraced some gains after the PPI data release, last trading down 0.1 per cent at 98.143.
The Nikkei 225 rebounded 0.4 per cent after snapping a six-day winning streak on Thursday with its biggest one-day selloff since April 11, as Japanese GDP data showed the economy expanding by an annualised 1.0 per cent in the April-June quarter, beating analyst estimates. The dollar weakened 0.3 per cent against the yen to 147.64.
Australian shares were last up 0.2 per cent, while stocks in Hong Kong were down 0.9 per cent following losses on Thursday for US-listed exchange-traded funds tracking Chinese companies.
The CSI 300 gave up early gains and was last trading flat after the release of weaker-than-expected Chinese economic data for July including retail sales and industrial production.
Markets in India and South Korea are closed for public holidays.
Cryptocurrency markets stabilised after a new record for bitcoin of $US124,480.82 ($A191,777.05) on Thursday proved fragile and promptly crumbled after falling short of its next key milestone. The digital currency was last up 0.7 per cent, recovering some ground, while ether gained 1.7 per cent.
"Bitcoin's failure to conquer the $US125,000 ($A192,577) resistance signals another consolidation phase," said Tony Sycamore, a market analyst at IG in Sydney.
In commodities markets, Brent crude was flat at $US66.94 ($A103.13) per barrel ahead of a meeting in Alaska between US President Donald Trump and Russian leader Vladimir Putin.
Gold was slightly lower as the markets digested the path of inflation-adjusted interest rates, which typically move in the opposite direction from bullion prices. Spot gold was trading up 0.1 per cent at $US3,339 ($A5,144) per ounce.
In early European trades, the pan-region futures were up 0.4 per cent, German DAX futures were up 0.3 per cent at 24,489, and FTSE futures were up 0.5 per cent.
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So yes, two adults will fit back there, but three would be a squeeze, and anyone with big feet will notice there's not much space under the front seats. Still, the tape measure says there's more room back there than in the old Leaf, so we can't complain too much. 2026 Nissan Leaf: Quick drive Credit: CarExpert To see how the Nissan Leaf lines up against the competition, check out our comparison tool The Nissan Leaf is based on an electric-only platform – 'CMF-EV', shared with the Ariya – with the motor mounted up front for front-wheel drive and, in Europe at least, a choice of power outputs and battery capacities. 2026 Nissan Leaf: Quick drive Credit: CarExpert Tested here is the 75kWh model with the 160kW motor. The entry-level variant gets a 52kWh battery feeding a 130kW version of the same electric motor. Official WLTP figures rate the 75kWh Leaf's range at 604km and the 52kWh version at 436km. Nissan's own 130km/h test at relatively low temperature (10 degrees celsius) saw 330km and 224km, respectively, which are promising numbers for Australian highway use. Charging speeds are up on the old Leaf and the outdated CHAdeMO system has been consigned to history. The small battery takes AC charging at up to 7.4kW and DC fast-charging at up to 105kW, via which it's good for a 20-80 per cent top-up in under 30 minutes. The 75kWh pack supports 11kW AC and 150kW DC charging, resulting in the same 30-minute 20-80 per cent window. Vehicle-to-Load (V2L) capability is standard, while Vehicle-to-Grid (V2G) is planned via a future software update. To see how the Nissan Leaf lines up against the competition, check out our comparison tool Refinement is a standout. Aerodynamic tweaks, including a flat underbody and the shape of the rear window (though we don't like that there's no wiper), help deliver a quiet cabin even close to the quoted 160km/h top speed. 2026 Nissan Leaf: Quick drive Credit: CarExpert On our limited test loop – a smooth, if varied track – the Leaf felt stable, predictable and composed through sweeping bends and perfectly capable of dealing with a bit of exuberance in the tighter corners. The steering is accurate, if slow, and body control is well-judged, though the new Leaf stops short of being engaging or actively involving for keener drivers. Push too hard and the traction control quickly reins in wheelspin when accelerating out of tighter corners. Ride comfort over bumps will need a proper road test to assess, but the Leaf shrugged off crests and undulations without fuss, quickly regaining its composure even when driven as quickly as the closed circuit allowed. The chassis tune is a mature one with great sophistication built in, helping give the Leaf a grown-up feel that belies its compact dimensions. 2026 Nissan Leaf: Quick drive Credit: CarExpert The brakes are progressive, while the regenerative braking can be adjusted via the paddles behind the steering wheel or set for one-pedal driving with the e-Pedal button. There are Eco and Sport driving modes either side of the default Normal setting and they do what you'd expect, the former dulling response to accelerator input in the name of efficiency, while Sport mode brings sharper responses. The claimed 0-100km/h time of 7.6 seconds seems entirely believable, and is swift enough for anyone without drawing expletives from your passenger whenever you put your foot down. Given the nature of this test drive, it wasn't possible to get an accurate feel for the new Leaf's efficiency or range. We'll test those capabilities when we drive it on public roads later this year. To see how the Nissan Leaf lines up against the competition, check out our comparison tool While Australian specs are still to be confirmed, and we don't yet know if all four versions confirmed for Europe will be offered Down Under, here are some of the highlights. 2026 Nissan Leaf: Quick drive Credit: CarExpert 2026 Nissan Leaf: Quick drive Credit: CarExpert 2026 Nissan Leaf equipment highlights: Dual 14.3-inch displays Wireless phone charging Panoramic dimmable glass roof LED exterior lighting Multiple drive modes Adjustable regenerative braking with paddles ISOFIX child seat mounts (outer rear seats) 19-inch alloy wheels Bose driver's headrest speaker Apple CarPlay and Android Auto To see how the Nissan Leaf lines up against the competition, check out our comparison tool The new model hasn't yet been assessed by ANCAP or Euro NCAP. The previous two Leaf generations scored five stars, and Nissan is clearly aiming for the same result here, with a full suite of active safety features expected as standard. 2026 Nissan Leaf: Quick drive Credit: CarExpert Standard safety equipment includes: ProPilot driver assistance system 3D Around View Monitor To see how the Nissan Leaf lines up against the competition, check out our comparison tool The Nissan Leaf is expected to be covered by the Japanese brand's standard five-year vehicle warranty with unlimited mileage, with up to 10 years or 300,000km of coverage available if you service the car at an authorised Nissan dealer. A separate eight-year/160,000km warranty is expected for the battery pack, as per the Ariya. 2026 Nissan Leaf: Quick drive Credit: CarExpert To see how the Nissan Leaf lines up against the competition, check out our comparison tool Pray that Nissan Australia can keep the Leaf's price down, as it's a massive step up from its predecessors in every respect. 2026 Nissan Leaf: Quick drive Credit: CarExpert We like the new crossover style, and the enhanced cabin practicality and technology, while the overriding impression from our first drive is the noteworthy refinement, smoothness and maturity. If Nissan's efficiency claims are repeated in the real world, the new Leaf could be as much of a game-changer as the original. CarExpert can save you thousands on a new Nissan Leaf. Click here to get a great deal MORE: Explore the Nissan Leaf showroom Step up in refinement, quality Smooth driving manners Stylish design Not massive inside Likely to be more expensive No rear window wiper
