The Nikkei has clawed back early losses to be down only 0.3% at the time of writing, thanks to a bounce in USDJPY. Most other Asian equity markets are stronger, led by a 1.3% rise in the Shanghai composite and a 1.6% rise in the Hang Seng. Korea is up 0.4%.
FX price action has been muted and trading thin. AUDUSD and EURUSD are essentially unchanged from Friday closes while USDJPY is marginally higher at 96.55. In the Emerging Asian dollar pairs, USDSGD has rallied to 1.2614, despite better than expected Q2 GDP growth in Singapore while USDPHP has rallied to 43.650.
Asian rates markets are mixed, but yields are generally lower. JGB yields are essentially flat, Korean IRS rates are off 1 – 3bps, but Indian swap rates are up 12 to 28bps.
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Credit Suisse