Halister News

(Bloomberg) -- Asian currencies advance across the board, led by Korean won and Malaysian ringgit, as greenback retreats amid renewed doubts about near-term hikes from the Fed.

• Bloomberg’s dollar index has now given back all gains from last week’s strong jobs report and is testing Aug. lows; a surprise drop in U.S. worker productivity has added pressure
• EM currency carry trades could still be the theme to play, given accommodative monetary conditions, says Maybank
• Korean won jumps 1.2%, setting 14-month high ahead of tomorrow’s BOK meeting
  • FX authorities are closely monitoring market and may take stabilizing measures if there’s excess volatility or herd-like behavior, says a BOK official
  • Won’s break below the June 2015 low near 1,100 may set up a test of April 2015 low near 1,065, BBH wrote in a note yesterday; spot now at 1,092
  • Yield on 10-year note declines 4 bps to 1.39%, according to Korea Exchange data
• Yuan gains 0.2%
  • Given dollar weakness overnight, USD/CNY is to see some pressure today, and earlier gains in CNH are in line with Asian peers’ strength, says Maybank
  • Yield on China’s 10-year sovereign bond is down 1 bp at 2.71%, near lowest since January 2009
  • Abundant liquidity due to increasing trade surplus, maturing central bank notes and OMO injection should keep bond market supported, SWS Research writes
• Aussie rises for a third day as local sovereigns rally
  • Outgoing RBA Gov. Stevens says it will take more than rate cuts to spur stronger growth, and fiscal side must do its part
  • June home-loan approvals rose 1.2% m/m vs est 2.3%
• Yen climbs for a second day; Nikkei 225 reverses early losses
  • BOJ may consider setting a bond-purchase range of 70t-90t yen per year instead of current 80t yen in policy review next month, Sankei reports
  • Without major data or news to trade on during summer holiday, USD/JPY is unlikely to have a clear direction in near term, says Sumitomo Mitsui Banking Corp.
• Baht set for third day of gains as overseas investors continue to buy local equities
  • Global investors bought net $151m of Thai equities yesterday, adding to Aug. 8 inflows that were biggest in four months: exchange data
  • Second-quarter GDP will probably continue to show q/q improvement, Maybank Kim Eng Securities said in note yesterday; sees 3.5% y/y growth, up from 3.2% in 1Q
• Ringgit strengthens past 4.0 per dollar as Brent crude climbs above $45/bbl
  • Bank Negara Malaysia to leave rates unchanged at 3.00% in 2016 and 2017, according median forecast in Bloomberg survey
• Philippine peso strengthens
  • June exports fell 11.4% y/y vs est. drop 12.5%
  • Bangko Sentral ng Pilipinas is forecast to leave its overnight borrowing rate at 3.00% at its meeting tomorrow, according to all economists in Bloomberg survey