Commodity currencies continue to push lower amid growth concerns
|Asia Market Update: Equities trade mixed; JPY extends rise; Commodity currencies continue to push lower amid growth concerns.
General trend
- AU yields keep pushing lower.
- Metals and Crude Oil extend declines.
- Japan and Australia reported mixed PMI data.
- Shanghai and Hong Kong markets rose during morning trading.
- Nikkei 225 pared gain.
- SoftBank Group to hold annual meeting on Fri [Jun 24th].
- Australian equities trade slightly higher.
- US equity FUTs trimmed losses.
- Philippines Central Bank is expected to raise rates.
- Indonesia Central Bank expected to leave rates unchanged.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- China NPC Standing Committee to review the draft revision of the anti-trust law on June 21-24th.
- BRICS summit in focus [Jun 23rd].
- Fed Chair Powell’s Congressional testimony in focus [Jun 22-23rd].
- Japan CPI data is due on Fri.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) Australia Jun preliminary PMI manufacturing: 55.8 V 55.7 PRIOR.
- (NZ) New Zealand sells NZ$200M v NZ$200M indicated in 2025 and 2032 bonds.
- (AU) China companies' 2021 investment in Australia at A$778M (prior A$2.5B), cites KPMG study - Australian media.
- (AU) Australia Coucil of Financial Regulators: Monitoring pass through of RBA rate hikes to deposit rates.
Japan
- Nikkei 225 opened -0.1%.
- (JP) Former Bank of Japan (BOJ) Official Okina: BOJ resolve to keep borrowing costs ultra low is causing a negative spiral of Yen depreciation; Recent Yen moves are very sharp and problematic.
- (JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.800% 20-year JGBs, Avg Yield: 0.9050% v 0.7240% prior, bid-to-cover: 3.38x v 3.10x prior.
- (JP) Japan Former FX Chief Nakao: Continuing with YCC has many negative effects; Clear that monetary policy is playing role in the weak Yen.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) FT: Investors 'crank up' bets on the Bank of Japan (BOJ) surrendering Yield Curve Control (YCC).
- (JP) Japan Investors Net Buying of Foreign Bonds: -496.7B v -¥867.2B prior; Foreign Net Buying of Japan Stocks: -942.5B v -¥206.4B prior.
Korea
- Kospi opened +0.2%.
- (KR) South Korea Fin Min Choo: Will work to minimize adverse impact from weakening Won currency (KRW).
- (KR) Bank of Korea (BOK) Sr Dep Gov Lee: Need to tame inflation via pre emptive policy; Rate hike negative impact on growth is limited.
- (KR) South Korea to probe speculative property investment by foreigners - Yonhap.
China/Hong Kong
- Hang Seng opened +0.7%; Shanghai Composite opened +0.2%.
- (CN) China Premier Li: To mull extending NEV purchase tax exemption; Incentives may boost auto consumption by CNY200B.
- (CN) China President Xi: Call for enhancement of regulations for major payment platform companies; To enhance regulation of financial holding companies; To step up macro policy adjustments; Vows to boost economic controls to meet annual target - BRICS summit remarks.
- (HK) Hong Kong incoming Chief Exec John Lee: Working on a strategy to reopen the border with China.
- (CN) China PBOC sets Yuan reference rate: 6.7079 v 6.7109 prior.
- (HK) SCMP comments on the recent currency interventions by the HKMA: the central bank has purchased ~HK$104.3B since May 2022.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.
- (CN) China May Swift Global Payments (CNY): 2.15% v 2.14% prior.
- (CN) Securities Times Paper: Issues warning against what it calls 'improper' policies that boost property sales.
- (HK) Macau Leader Ho to hold a briefing on COVID at 2:30ET.
North America
- (US) White House reportedly to authorize commercial labs to conduct monkeypox tests in an attempt to dramatically expand testing - WaPo.
Europe
- (IE) Ireland June Consumer Confidence: 57.7 v 55.5 prior.
Levels as of 01:20 ET
- Nikkei 225, -0.1%, ASX 200 +0.3% , Hang Seng +1.4%; Shanghai Composite +0.7% ; Kospi -0.6%.
- Equity S&P500 Futures: flat; Nasdaq100 flat, Dax -0.3%; FTSE100 -0.4%.
- EUR 1.0581-1.0556 ; JPY 136.30-135.12 ; AUD 0.6928-0.6882 ;NZD 0.6297-0.6253.
- Gold -0.3% at $1,833/oz; Crude Oil -2% at $104.06/brl; Copper -1.7% at $3.8720/lb.
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