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USD/JPY rises to another 2002 high amid BOJ’s bond buying and forward guidance

TradeTheNews.com Staff TradeTheNews.com

Asia Market Update: USD/JPY rises to another 2002 high amid BOJ’s bond buying and forward guidance; Equity indices trade modestly higher; Samsung trades slightly lower following final results/guidance.

General trend

- USD trades generally firmer after BOJ decision; JGB yields decline as yield control is defended.

- Offshore yuan (CNH) declines to lowest level since early Nov 2020.

- Nikkei 225 trades higher amid BOJ decision.

- Japanese companies due to report earnings include ANA Holdings, Fujitsu, Hitachi, Japan Tobacco, Komatsu, Kyocera, Mitsubishi Electric, Murata Manufacturing, Z Holdings.

- Japan markets are closed for holiday on Apr 29th (Fri); Golden week also in focus.

- Shanghai and HK markets extended gains during the morning sessions.

- Standard Chartered beat ests.

- S&P ASX 200 has remained higher; Fortescue rises on higher shipments guidance.

- Nasdaq FUTs rise on results from Meta Platforms.

- BOJ Gov Kuroda to hold press conference at 6:30 GMT.

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.

- Companies due to report during the NY morning include Asbury Automotive, A. O. Smith, Baxter International, Peabody Energy, Carrier Global, Caterpillar, Comcast, Domino’s Pizza, First Cash, Hershey, Huntsman Corp, International Paper, Interpublic, Iron Mountain, JinkoSolar, KBR, Keurig Dr. Pepper, Lazard, Laboratory Corp, Eli Lilly, Southwest Airlines, Mastercard, McDonald’s, Altria, Merck, Northrop Grumman, Overstock.com, PulteGroup, Reliance Steel, Sonic Automotive, SiriusXM, Stanley Black & Decker, Thermo Fisher, TempurSealy, Twitter, Textron, Virtu Financial, Weight Watchers.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened +0.6%.

- (NZ) Reserve Bank of New Zealand (RBNZ) Hawkesby: See macroprudential tools as more permanent; need a full set of tools to better manage risks, needed to stabilize financial system.

- SLR.AU Reports Q3 Gold production 53.8K oz v 60.5K y/y; Sales 55.4K oz v 60.7K y/y; Withdraws guidance.

- FMG.AU Reports Q3 Iron Ore shipments 46.5Mt v 42.3Mt y/y; Ore mined 51.6Mt v 53.6Mt y/y; Raises shipments guidance to 185-188Mt from 180-185Mt.

- NCM.AU Reports Q3 gold production 479.8K oz v 512.4K y/y; ASIC $1,008/oz v $891/oz y/y; Copper production 31.0Kt v 35.0Kt y/y; Raises FY22 Gold production.

- (NZ) New Zealand Apr ANZ Activity Outlook: 8.0 v 3.3 prior; Business Confidence: -42.0 v -41.9 prior; Apr Business inflation expectations 5.9% v 5.5% prior.

- (AU) Australia Q1 Import Price Index Q/Q: 5.1% v 7.0%e; Export Price Index Q/Q: 18.0% v 11.0%e.

Japan

- Nikkei 225 opened +0.2%.

- (JP) Bank of Japan (BOJ) leaves interest rate on excess reserves (IOER) unchanged at -0.10%; as expected; To conduct fixed rate operation of 10-year JGBS at 0.25% every business day, unless it is very likely no bids will be submitted.

- (JP) Bank of Japan (BOJ) quarterly outlook for economic activity and prices: Raises FY22/23 CPI outlook, cuts GDP; Raises FY23/24 GDP.

- (JP) Japan Fin Min Suzuki: Need to be aware of process of exiting subsidies; Additional budget will fund oil price response measures; Hope BOJ will continue with appropriate policy.

- (JP) Japan Mar retail sales M/M: 2.0% V 1.0%E; Y/Y: 0.9% V 0.3%E.

- (JP) Japan Mar preliminary industrial production M/M: 0.3% V 0.5%E; Y/Y: -1.7% V -1.3%E.

- (JP) Japan Investors Net Buying of Foreign Bonds: -¥1.16T v -¥72.7B prior; Foreign Net Buying of Japan Stocks: ¥595.1B v ¥406.5B prior.

- (JP) Japan Finance Ministry approves use of ¥1.1T in coronavirus reserve fund \and ¥394B from general fund reserve.

- (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) 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% [Unexpected; Second operation of the day].

- 6723.JP Reports Q1 Net ¥59.8B v ¥13.7B y/y, Op ¥100.1B v ¥30.2B y/y, Rev ¥346.7B v ¥203.7B y/y; Announces ¥200B share buyback (yesterday after the close).

- Japan closed in tomorrow’s session, Apr 29th.

Korea

- Kospi opened +0.7%

- (KR) South Korea Apr Business Manufacturing Survey: 88 v 85 prior; Non-Manufacturing Survey: 85 v 82 prior.

- (KR) South Korea Fin Min Hong: Reiterates, rise in USD/KRW is fast; will take steps to stabilize FX if needed.

- 005930.KR Reports final Q1 (KRW) Net 11.3T v 7.09T y/y; Op 14.1T v 14.1T prelim; Rev 77.8T v 77.0T prelim.

China/Hong Kong

- Hang Seng opened +0.9%; Shanghai Composite opened -0.4%.

- (HK) Hong Kong Monetary Authority (HKMA) Dep CEO: HKD may hit the weaker end of the policy band during US Fed tightening cycle; no plans to change HK$ peg system.

- (CN) China authorities to crack down on price gouging amid hoarding and Beijing lockdown concerns – SCMP.

- (CN) China PBOC sets Yuan reference rate: 6.5628 v 6.5598 prior.

- (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 ranks first globally in international patent applications (3rd consecutive year).

- (CN) China Aviation Regulator (CAAC) sees May Day holiday air travel -77% - local press.

Other

- (SG) Monetary Authority of Singapore (MAS): Affirms 2022 Core CPI forecast to 2.5-3.5%; affirms 2022 GDP growth to 3-5%.

North America

- (CA) Bank of Canada (BOC) Gov Macklem: Reiterates rates will need to go higher, higher rates are needed, how high they go depends on how the economy responds and how inflation outlook evolves; Reiterates will consider 50bps hike at next meeting, 75bps hike would be very unusual - senate banking committee.

- (CA) Bank of Canada (BOC) Rogers: Housing price growth is unsustainable.

Europe

- (UK) Mar Car Manufacturing Y/Y: -33.4% v -41.0% prior – SMMT.

- (RU) Said that EU Energy companies are preparing to accept Russia President Putin terms on Russia gas purchases - Press.

Levels as of 01:00ET

- Hang Seng +0.9%; Shanghai Composite +0.2%; Kospi +0.7%; Nikkei225 +1.5%; ASX 200 +1.1%.

- Equity Futures: S&P500 +0.8%; Nasdaq100 +1.4%, Dax -0.1%; FTSE100 +0.3%.

- EUR 1.0563-1.0509; JPY 129.90.-128.35; AUD 0.7128-0.7085; NZD 0.6550-0.6487.

- Commodity Futures: Gold -0.6% at $1,878/oz; Crude Oil -1.3% at $100.72/brl; Copper -0.3% at $4.45/lb.

Author

TradeTheNews.com Staff

TradeTheNews.com

Trade The News is the active trader’s most trusted source for live, real-time breaking financial news and analysis.

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