Yen extends gain after Japan’s recent FX move
|Asia Market Update: Yen extends gain after Japan’s recent FX move; JP markets closed for holiday; Equities trade mixed.
General trend
- Is Japan done intervening?
- Will USD strength cause Asian governments to follow Japan and intervene in the FX markets?
- Rate-sensitive indices decline in Australia [Consumer Discretionary, REIT].
- Shanghai Property Index remains volatile.
- The US Federal Reserve Board will host a Fed Listens event on September 23.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened +0.1%.
- (AU) Australia Sept preliminary PMI manufacturing: 53.9 V 53.8 prior.
- (NZ) Reserve Bank of New Zealand (RBNZ) and FMA seeking feedback on draft FMI Standards.
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr to speak on Sept 27th and Sept 30th.
Japan
- Nikkei 225 closed for holiday.
- (JP) Japan Top FX Diplomat Kanda: Have intervened in the FX market (1st intervention to stop JPY decline since 1998) [from Sept 22nd].
- (JP) Japan Top FX Diplomat Kanda: FX action can be taken any day, anywhere and includes holidays [from Sept 22nd].
- (JP) 4.8 EMSC Scale Earthquake reported to have shaken buildings in Tokyo - Press.
Korea
- Kospi opened flat.
- (KR) South Korea Aug PPI Y/Y: 8.4% v 9.2% prior.
China/Hong Kong
- Hang Seng opened -0.5%; Shanghai Composite opened -0.1%.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Sells CNY21B in 14-day reverse repos v CNY16B prior; Net inject CNY21B v Net inject CNY16B prior.
- (CN) China PBOC sets Yuan reference rate: 6.9920 v 6.9798 prior (Weakest since early Aug 2020).
Other
- Foundries [including Taiwan Semi] are facing pressure from automakers to renegotiate 2023 quotes and orders; the renegotiation talks are due to occur in Q4 2022 - Digitimes.
- (SG) Singapore Aug CPI M/M: 0.9% v 0.6%e; Y/Y: 7.5% v 7.2%e.
North America
- (US) Initial jobless claims: 213K V 217KE; continuing claims: 1.379M V 1.418ME.
- (US) Q2 current account: -$251.1B V -$260.0BE.
- (US) Aug leading index: -0.3% V -0.1%E.
-*(US) Weekly EIA natural gas inventories: +103 BCF VS. +93 BCF TO +95 BCF indicated range.
- (US) Sept Kansas City Fed Manufacturing Activity Index: 1 v 5e.
Europe
- (UK) Sept GfK Consumer Confidence: -49 v -42e (Lowest since 1974 when records began).
- (UK) FT: Bank of England (BOE) prepares for 'tug of war' with Treasury.
Levels as of 01:20 ET
- Nikkei 225, closed, ASX 200 -2% , Hang Seng -0.4%; Shanghai Composite flat ; Kospi -1.7%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.1%, Dax -0.3%; FTSE100 +0.2%.
- EUR 0.9852-0.9818 ; JPY 142.59-141.76 ; AUD 0.6655-0.6610 ;NZD 0.5857-0.5821.
- Gold -0.2% at $1,677/oz; Crude Oil -0.4% at $83.16/brl; Copper -0.5% at $3.4452/lb.
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