Asian stocks were flat to slightly higher ahead of a busy economic calendar. Sensex rallied more than 2% on the open, led by the banking sector after RBI governors unveiled banking sector reform measures yesterday. The Nikkei and SHcomp were flat, while Singapore and Thailand rose 1%, and S&P futures were up marginally.
The USD gained ground in G10. EUR has edged lower to 1.319 from 1.32 NY close. USDJPY traded a tight range of 99.6 to 99.8, with BoJ’s status quo leaving little impact on the currency. AUD and NZD were modestly lower. Price action in EM FX was more mixed. INR surged 2% on the open to 65.65, the best levels in two weeks. IDR on the other hand, continued to weakened with the 1 month NDF trading at a new high of 11728. For the rest of the region, KRW, and TWD were up 0.3%, but SGD fell 0.2%.
US 10y held just below 2.90% in Asian trading. IRS yields were higher across the region, following US Treasury overnight. India was the key exception with bond and swap yields sharply lower.
Read the full report: Market Research
Credit Suisse