The Treasury market rally in anticipation of Wednesday's interest-rate cut hit a wall after weekly employment data cast doubt on the outlook for further reductions this year. Overseas investors added to their holdings of Treasuries in July, with the total value climbing to a record.

The Bank of Japan said it will begin offloading its massive ETF holdings, while leaving its policy rate unchanged despite dissenters favoring a hike. The central bank will begin disposing of its ETFs once necessary operational preparations are completed, at a pace of about $4.2b by market value per year. The yen rises against the greenback and is the top perform in the G10 complex.

Asian stocks retreated from a near-record level as Japanese equities pulled back from their session highs after the BOJ decision. The MSCI Asia Pacific Index traded flat. It had opened higher after major US benchmarks, and the Russell 2000 small-cap index closed at fresh highs for the first time since November 2021.

UK households are struggling to save as more of their income is eaten up by the rapidly rising cost of food and other essentials, according to a closely watched survey. GfK said an index tracking savings intentions posted its biggest decline in a year in September.

Four key US equity benchmarks soared to record highs Thursday as risk-on sentiment permeated Wall Street after the Federal Reserve delivered its first interest-rate cut this year and signaled more to come. US equity futures have also opened higher.