The Global Macro Pulse

S&P 500 futures are down 0.1%. The Nikkei is essentially flat, but most other Asian equity markets are up, led by a 2.2% rally in the Hang Seng Index and a 1.4% rise in the Shanghai Composite in response to China’s new detailed plans for economic reform. The Kospi has risen 0.4% despite KRW appreciation.

AUDUSD has rallied to 0.9397 on China reform news and USDJPY has fallen to 100.09. EURUSD is down very slightly to 1.3490. USDKRW gapped lower at the open and is trading at 1060.41 as we write, likely facing resistence from official intervention. Similarly USDMYR dropped to 3.1945, USDINR fell to 62.7275, USDIDR is down at 11,465, and USDTWD has dipped to 29.531. USDCNY fixed 19pips lower to 6.13320.

JGB yields are up about 1bp after a weak Rinban today. Korean yields are flat, Thai swaps are up 1bps, Malaysian rates are down 1 – 4bps, and Indian yields have fallen 2 – 4bps. China’s 7-day repo rate is up 10bps to 5.4% and front swaps are up 1 – 2bps.