USDJPY and the Nikkei rallied in response to the Bank of Japan extending and increasing the size of its subsidized loans to banks. USDJPY rose from just under 102 to 102.53 on the news, driving the Nikkei to rise 1.3% for a gain on the day of 2.2% at the time of writing. Most other Asian equity markets have been more subdued in absence of direction from the US overnight. S&P futures are up 0.1%, the Hang Seng Index is flat, Kospi is down 0.3%, and Shanghai has fallen 0.5%.
Away from the yen, the USD softed against other G10 currencies. AUDUSD popped up to a high of 0.9081 in response to the RBA minutes, but has ebbed to 0.9053 since. EURUSD has risen slightly to 1.3712 while GBPUSD is up from its overnight low to trade at 1.6729. EM Asia currencies are weaker across the board today, led by a 0.6% fall in the THB to 32.41 and a 0.5% drop in the IDR to 11,845. USDKRW has risen 0.3% to 1064.38. USDCNY fixed 20pips higher to 6.1073.
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Credit Suisse