The wave of better-than-expected PMIs globally has pushed most equity markets up in Asia. The Nikkei has rallied 2.8%, the HSI and Kospi and S&P futures are all up 1.0%, and Shanghai is up 0.5%.
EURUSD has traded flat close to its lows around 1.3185 and USDJPY close to its highs around 99.50. AUDUSD rallied to 0.9009 after the RBA announced it had kept its policy rate unchanged, as was unanimously expected by market economists. In EM Asia, USDKRW gapped lower at the open and has traded down 0.4% to 1095.65 while USDMYR is off 0.3% to 3.263, the latter in partial response to the government’s unexpected fuel price hike. In contrast, USDINR has rallied to 66.89 without any opposition from India’s central bank. USDCNY fixed 16pips higher to 6.1718, nudging the CNY TWI a touch lower. JGBs are and yields in most Asian markets are slightly lower, despite a 3.5bps rise in US 10y.
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Credit Suisse