Halister News

(Bloomberg) -- Asian currencies gain led by Malaysia’s ringgit, Indonesia’s rupiah, South Korea’s won, Taiwan dollar and Japanese yen as global sentiment improves a week after the rout in world markets following U.K.’s decision to leave the EU.

• With global stocks recovering from sell-offs after U.K.’s Referendum results, regional currencies are following their rebound on position adjustment, says Teppei Ino, Singapore- based analyst at Bank of Tokyo-Mitsubishi UFJ by phone
  • However, sentiment isn’t strong enough for investors to aggressively take risks
• Dollar index falls, heads for 0.5% weekly gain
  • MSCI Asia Pacific Index heads for 3.5% weekly gain, its first in three weeks while crude prices gains 3.4% on the week
• Yen is poised to snap three-day losses after Tankan survey; still heading for 0.6% weekly decline
  • May jobless rate at 3.2% matching estimate; May core consumer prices fall 0.4% y/y matching estimate; 2Q large manufacturer Tankan unchanged at 6 vs est. 4
  • BOJ’s 2Q Tankan survey shows USD/JPY may be capped by selling from Japanese exporters between 105-110, according to Mitsubishi UFJ Morgan Stanley Securities
  • Deputy Chief Cabinet Secretary Hagiuda says to work with G-7, BOJ to do utmost for market stability, and watching market impact of U.K. vote, can act if needed, and working toward market stability includes FX markets
• Onshore yuan falls for second day, heading for third week of declines; offshore yuan steady, set for 0.5% weekly losses
  • China sets yuan fixing at 6.6496 vs 6.6312 day earlier; China CFETS RMB Index at 95.02 as of June 30
  • China June manufacturing PMI at 50.0 matching estimate, and June Caixin manufacturing PMI at 48.6 vs est. 49.2
  • Fall in China manufacturing PMI mainly due to deteriorating sentiment as uncertainty over global economic outlook increases after Brexit, according to Commerzbank
  • Downturn in China’s old economy can’t be offset by the gains in the service sector, which would indicate that Q2 GDP would be nearer to 6.5%, according to ANZ
  • Deterioration in Caixin factory PMI compared to official PMI in June would intensify yuan bearish sentiment in 2H: Huabao
• South Korea’s won rises for 4th day; heads for 2.9% weekly gain, the biggest weekly gain since early March
  • June exports fall 2.7% y/y vs est. -8.2%
  • BOK to hold briefing to explain inflation trailing target on July 14
  • South Korea plans to change base year for CPI to 2015 from 2010, and cut number of items in the basket to 462 from 481, Statistics Office says in statement
• New Zealand dollar rises, heading for second weekly gains
  • RBNZ says East Asia Pacific central banks reinvest Asian bond funds
• Taiwan dollar is set to gain 4th day; up 0.9% on week
  • Nikkei Taiwan June manufacturing PMI 50.5 vs 48.5 in May
• Singapore dollar set to rise 0.6% this week
  • Singapore 2Q private home prices fall 0.4% q/q, according to URA
• Malaysia ringgit is set to rise for 4th day, heads for 2.5% gain
  • 1MDB, IPIC officials meet in Abu Dhabi to resolve dispute, WSJ reports
• Thailand baht advances for fourth day, is set to 0.6% weekly gain
• Indonesia rupiah gains, heads for 1.7% weekly gains, first time in three weeks
  • Nikkei Indonesia June manufacturing PMI 51.9 vs 50.6 in May
  • Govt will revise laws on taxation to boost tax base in order to improve competitiveness, President Joko Widodo speaks
• Philippine peso still set for three straight weeks of decline
  • “We need to quickly adjust our tax rates, bring them closer to reality. Our people expect that and it will be good for business,” Finance Secretary Dominguez says in speech during turnover ceremony
• Australia dollar gains, is set to 0.1% weekly losses, first time in five weeks