Halister News

(Bloomberg) -- Asian EM currencies advance as regional stocks rise after weaker-than-expected U.S. non-farm payrolls boost risk sentiment. Yen gains as BOJ Governor Kuroda’s comments fail to boost speculation of further easing.

• U.S. jobs report doesn’t signal Sept. Fed hike; see Research Roundup
• Asian currencies are broadly firmer as U.S. jobs data failed to further boost Sept. Fed rate hike speculation, leading to some correction from earlier sell-off in regional currencies, Mizuho Bank EM trader Masakatsu Fukaya says
  • Downward pressure on dollar amid risk-on sentiment is likely to continue esp. against the Southeast Asian currencies where carry-trade is likely to support
• Standard Chartered revises Fed rate call to no change in 2016 from previous forecast for a rate cut, according to note today
• Yen strengthens versus dollar after BOJ Governor Kuroda’s comments failed to satisfy USD bulls carried over from last week, Asia-based FX trader says
  • Kuroda says most powerful easing measures are needed for Japan and BOJ shouldn’t hesitate to ease if benefits outweigh costs; reduction in the level of monetary policy accommodation, as called for by “some market participants,” won’t be considered
  • Macro and leveraged investors are cutting long USD/JPY positions in response to Kuroda’s comments, according to an Asia-based FX trader
  • BOJ to confirm plans to strengthen monetary easing towards achieving 2% inflation target at Sept. meeting, Nikkei reports
  • Leveraged funds increased net yen long position by 8,745 to 57,380 in week ended Aug. 30, most since July 2008: CFTC data
  • Japan’s Finance Minister Aso says told G-20 of need for market stability
  • Japan’s 30-year govt bonds drop ahead of auction tomorrow; yield curve is steepening, led by super-long tenors on worries the 30-year auction may face weak demand: SMBC Nikko Securities
• Yuan firmer on broad USD strength even as PBOC sets reference rate weaker for the first time in three days
  • Caixin China Aug. composite PMI came in at 51.8 vs 51.9 in July; services PMI at 52.1 vs 51.7 in July
• China will enhance two-way yuan flexibility, according to consensus made between Chinese President Xi and U.S. President Obama in meeting ahead of G20 summit, according to Xinhua News Agency yday
  • Yuan depreciation pressure is likely to peak in Nov, given a higher chance of a Fed rate increase toward year-end: Bocom
• Aussie and kiwi both strengthen for fourth straight day
  • With the RBA seen on hold this week and the rest of 2016, diverging central-bank outlooks may see AUD/NZD this year test the all-time low of 1.0021 set in April 2015: analysis
  • Australia’s economic strength supports AAA rating, Moody’s says
  • ANZ Bank raises kiwi dollar forecast on growth, Fed outlook
  • Kiwi strengthens on commodity data, macro buying versus Aussie: trader
  • RBNZ confirms will enforce previously announced new rules that tighten restrictions on lending to residential property buyers throughout country
• Asian currencies mostly higher, led by Korean won and Taiwan dollar
  • BOJ’s Kuroda triggers USD selling vs Asian currencies: trader
• Won among top gainers in region
  • South Korea’s end-Aug. FX reserves climbed to $375.46b compared with $371.38b from previous month, BOK says
• Thai baht bucks regional trend to decline as stocks drop as much as 2.9%