INSIDE ASIA: FX Mixed Before Fed; MSCI Delays A-Share Inclusion
(Bloomberg) -- Asian currencies fluctuate ahead of FOMC, BOJ meetings and Brexit vote looming next week; China’s onshore yuan pares losses after sliding to lowest since Jan. 2011 in early trade.
- Yen, won and baht among decliners, while ringgit, Aussie and kiwi advance
- “Asian currencies seeing some influence from onshore and offshore yuan upward and downward moves after MSCI decides not to include China A-shares in index,” Mizuho Bank emerging-market trader Masakatsu Fukaya says
- “Brexit risk still deters risk-taking. Traders and investors are basically staying on the sidelines ahead of outcome of Fed and BOJ meetings”
- MSCI decides against including A-shares in EM index; CSRC says decision won’t affect China capital market reform
- Not a big surprise, but MSCI decision has negative impact on yuan sentiment, RBS chief Greater China economist Harrison Hu says
- Disappointment for Chinese authorities: ANZ
- Yen heads for first decline in four days
- JPY stabilizes in anticipation of Fed, BOJ meetings: BofA
- 11 of 40 economists in Bloomberg survey say BOJ will ease; decision, Kuroda conference due June 16
- Brexit risk to keep spurring yen as BOJ seen on hold: Preview
- Japanese economy will grow 0.4% in 2Q, according to Bloomberg survey from June 8-14
- Cabinet minister Ishiba says negative rates won’t affect individuals; steps should be taken to counter unease
- USD/CNY steady at 6.5959 after rising as much as 0.12% to 6.6047; PBOC set CNY reference rate at 6.6001/USD, weakest since Jan. 12, 2011; USD/CNH also steady after rising to highest since Feb. 4
- May data due today include new yuan loans, seen rising to 750b yuan from 555.6b in April: median est. in Bloomberg survey; M2 is expected to grow 12.5% vs 12.8% in April; aggregate financing seen increasing to 1t yuan from 751b
- Rupiah little changed; Indonesia exports -9.75% y/y in May vs -7.8% est. and -12.64% in April; imports -4.12% vs -5.83% est. and -14.62% in April; trade surplus $370m
- Brexit, FOMC may drive rupiah more than Bank Indonesia: Analysis
- Won declines; Korean unemployment rate at 3.7% in May, same as previous month; median est. was 3.8%
- Aussie gains after falling as much as 0.33%; AUD may stay bid if jobs miss est. thanks to haven buying ahead of Brexit vote: Analysis; Australia jobs data due June 16
- NZ posts smallest current account deficit in six quarters
- 10-yr govt bond yield drops as much as 2 bps to 2.034%, while New Zealand’s benchmark yield falls as much as 6 bps to 2.443%
- Baht falls for second day; global investors sold net 609m baht ($17m) in local bonds yday, first outflow since June 1: TBMA data; sold net $2.1m local equities, fourth straight day of net sales, longest stretch in a month: exchange data
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Harrison Hu (Royal Bank of Scotland Group PLC)
Masakatsu Fukaya (Mizuho Financial Group Inc)
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