Overnight Price Action
USDJPY spiked from a low of 98.27 to 99.11 before paring gains to 98.78. According to Bloomberg, Chairman of Japan pension reform panel Takatoshi Ito will deliver a press conference at 6pm local time post the interim report. Ito said earlier this week that consensus was to reduce government bonds in the fund’s portfolio. The Nikkei reversed earlier losses, rising 0.3% on the day. JPY aside, majors remained rangebound. EURUSD was steady at 1.352, while AUD traded near NY close of 0.937. Most Asian FX opened on the strong side but has since pared gains. USDKRW is trading at 1074, USDMYR at 3.213, and USDINR at 62.3.
Asian stocks mostly fell, led by declines in Hong Kong and mainland China. The Heng Seng index fell 0.4%, while Shanghai and Shenzhen dropped 1.5% and 0.6%. Most ASEAN markets are down 0.2% to 0.4%, with the exception of the Jakarta index, which rallied 1.2%. S&P futures were up 0.1%. US yields have stabilized around 2.63% in Asia hours after falling to a low of 2.61% overnight. Asian rates rallied with yields 1bps to 3 bps lower.
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Credit Suisse