Overnight Price Action
The Nikkei shrugged off Friday’s fall on Wall Street to rally 1.5% in Asian trading. S&P futures are up 0.4%, but trading in the rest of Asia is mixed. The HSI has risen 1.4% and Shanghai is up 0.1%, but Kospi is down slightly. Most ASEAN equity markets are up less than one percent.
EURUSD has rallied to 1.3323 while USDJPY has risen to 94.78, but AUDUSD has climbed to 0.9618 in thin, pre-FOMC position adjustment trading. Trading in emerging Asia FX was subdued, but bifurcated along North-South lines. USDCNY fixed 9 pips lower to 6.1598, and the KRW and TWD traded sideways. However, most other emerging Asian currencies weakened vs. the USD, led by a fall in the SGD nominal effective exchange rate in response to weaker than expected export data. This pushed USDSGD to 1.2547.
Read the full report: Market Research
Credit Suisse