JPY weakness has raised the Nikkei 1.7%, S&P futures are up 0.1%, the HSI has risen 0.6%, and the Kospi has rallied 1.0%. Shanghai is essentially flat.
In the G10, USDJPY dominated Asian trading, rising to 97.30. AUDUSD extended the fall that began in New York, but bounced off of 0.910 to trade back to 91.28 as we write. Similarly, EURUSD has risen slightly in Asia to 1.3310.
The dollar opened bid against most EM Asia currencies. USDMYR jumped higher at the open where it seems to have met intervention by Malaysia’s central bank around 3.2580. USDKRW rallied to a high of 1118.08 before retracing to 1115.80. USDINR has gapped up to 61.5725. USDCNY fixed 40pips higher to 6.1705, nudging the CNY TWI slightly higher.
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Credit Suisse