The stronger-than-expected China PMI out yesterday and perceived lower risk of significant US military operations in Syria has helped push S&P 500 futures up 0.7%, the Nikkei up 1.5%, and the Hang Seng up 1.9%. In contrast, Kospi is down 0.2% in response to the fall in JPYKRW to a month low and seeming USDJPY threat to break higher.
AUDUSD and NZDUSD rallied 0.8% to 0.8968 and 0.7785, respectively, in response to the China PMI. In contrast, USDJPY rallied 0.5% to 98.65. EURUSD traded a low of 1.3192, but popped back up to 1.3210. In EM Asia, USDPHP dropped 0.9% to 44.194 and USDKRW ground lower to 1102.78 and USDMYR reversed an early rise to trade back down to its Friday close of 3.2833.
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Credit Suisse