Asian equity markets have generally given up some of yesterday’s gains despite the S&P rising 0.6% overnight. The Nikkei has returned from yesterday’s holiday closure to rise only 0.1%, the HSI is down 0.2%, Kospi is off 0.6%, and Shanghai is down 0.9%.
The dollar has held on to overnight gains against most G10 currencies. AUDUSD has edged slightly lower to 0.9307 after the minutes from the RBA’s August meeting made clear that the central bank remains open to the possibility of cutting its policy rate further. USDJPY has risen to 99.25 and EURUSD is at 1.3334. Emerging Asia currencies are weaker vs. the dollar across the board, led by 0.8% falls in the MYR and INR. USDMYR has risen to 3.2598 while USDINR jumped to 63.43 at the open. Even the KRW has softened, rising to 1085.46 to the dollar. USDCNY fixed 17pips higher to 6.15710.
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Credit Suisse