A surprise rise in China’s official PMI to 50.3 in July from 50.1 in June has pushed Asian equity markets higher. Shanghai is up 0.9%, Kospi and the HSI have risen 0.5%, and the Nikkei has rallied 1.4%, assisted by a rise in USDJPY to 98.35.
In contrast, the dollar was mixed to sideways. After falling overnight, AUDUSD has been steady at 0.8958 and EURUSD is at 1.3274. Only USDJPY moved meaningfully among G10 pairs. In EM Asia, the fall in USDMYR to 3.2380 has been the stand-out move. After popping higher on the open, USDINR has dropped to 60.57, close to its overnight low.
Read the full report: Market Research
Credit Suisse