Halister News

(Bloomberg) -- Most Asian currencies swing into gains as oil prices surge on optimism a deal will be struck to freeze output, with the yen holding close to its strongest level in 15 months.

• “Market sentiment improved on the back of rebounding oil prices and China’s Caixin PMI beating market expectations,” Gao Qi, forex strategist at Scotiabank, says in interview
  • Caixin China March Composite PMI rises to 51.3 from 49.4 in Feb., highest reading since April 2015
  • Won, Singapore dollar and ringgit all trade higher; oil is up 2.7% and Japan Nikkei 225 is headed for its first gain in seven days
• Yen trades lower after reaching its strongest level in 1 1/2 yrs yesterday, with PM Abe telling WSJ that countries should avoid competitive devaluation of currencies
  • There’s a risk of further yen appreciation as immediate gov. measures to counter gains are uncertain, according to Masafumi Yamamoto at Mizuho Securities
• Ringgit leads gains among Asian currencies; Feb. exports probably rose 2.9% y/ after contracting 2.8% y/y in Jan., according to median est. in Bloomberg survey; data due at noon local time
• Won rebounds; Korean rate cuts are seen getting delayed as swap traders now see 64% chance of Bank of Korea lowering its benchmark rate within the next three months, from 88% in mid-Feb.
  • South Korean authorities are closely monitoring FX market and will take measures if needed, Yonhap Infomax reports, citing Finance Minister Yoo Il Ho
• PBOC sets reference rate 0.14% lower at 6.4754, second day of weaker fixing, with onshore yuan slipping
  • USD/CNY gains limited as yuan needs to retain some strength against currency basket, Maybank says in note today
• Singapore dollar rebounds, set to snap three days of losses
• Australian sovereign bond prices rise; RBA Asst. Gov Kent speaks at 5:40 pm local time in Hobart
• Peso steady; international investors sold net $8.8m of local equities yesterday, biggest one-day outflow since Feb. 29: exchange data
• U.S. Treasuries dropped, with yield on 10-year bonds up 2 bps to 1.741%; minutes from U.S. March 15-16 FOMC minutes due today
• Thailand markets are closed for holiday