Overnight Price Action*
USDJPY broke below 95 levels, and Nikkei dropped as much as 6% on the day before paring losses to 4.8%. Chinese markets opened for the first time this week, down 3% from Friday’s level on weak macro data over the weekend. Stocks plugged in ASEAN, with Thai and Philippines indices both down 4.8%. S&P futures fell 0.3%.
EUR continues its stellar run, trading up to 1.335 against USD. AUD and NZD attempted a mid-day rally, but both have fallen to levels below those at the NY close. Most USDAsia pairs were higher on the day. RBI and BoT confirmed intervention in the FX market in the past week. Their announcements helped stabilize USDTHB at 30.9, although USDINR still opened higher to 58.17. The PBoC fixed USDCNY marginally lower to 6.1612 from 6.1620 pre-holiday. Most Asian swap curves flattened, while yields are higher in China and India, but lower in Malaysia, Singapore, and Korea. JGB yields fell initially but have since almost fully reversed.
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Credit Suisse