Halister News

(Bloomberg) -- Yen is biggest gainer in risk-off mood following drop in U.S. stocks and oil; Aussie and kiwi climb, while other currencies in region pare earlier losses.

• MSCI AC Asia Pacific Index recovers from earlier loss, now steady; Brent crude futures rebound from more than 2-month low of $44.55/bbl hit yesterday; S&P 500 fell 0.3% from record high
• Dollar Index declining for second day
• Market is anticipating Fed meeting signaling more hawkishness for “real live” meeting in Sept. or Dec., Saxo Capital global macro strategist Kay Van-Peterson says
  • Decline in some Asian currencies reflects central bank bias for loosening policies because of shakier global fundamentals
• Yen rises as much as 1.4% to 104.30, heading for second day of gains for first time in 2 weeks, boosted as Finance Minister Aso speaks in Tokyo
  • Yet to decide on size of stimulus package, will leave actual policy measures in BOJ’s hands: Aso
  • Leveraged funds quick to sell USD/JPY earlier on headlines saying Japan stimulus draft calls for continued cooperation with BOJ, Asia-based FX trader says
  • Govt hopes BOJ will achieve 2% inflation target, according to draft; doesn’t give details on size of stimulus or measures to boost consumption
  • Cabinet Office forecast says govt won’t achieve target of having primary balance surplus by fiscal 2020
  • Economy Minister Ishihara says fiscal situation is tough, structural reforms are necessary
  • BOJ Preview: Yen should advance with or without additional BOJ easing this week as market has priced in central bank action, analysts say
• Yuan steady after PBOC strengthens yuan fixing by 0.12%
  • PBOC injects 130b yuan with 7-day reverse repos
  • HSBC China Monetary Conditions Index at 5-yr high on weaker yuan
  • China has basis for interest rate or RRR cuts, Securities Daily says
• Won declines for second day
  • S. Korea 2Q GDP expands 3.2% y/y vs +3.0% est., +2.8% in 1Q; +0.7% q/q vs est. 0.6%
  • Private consumption boosted growth, helped by tax subsidies for car purchases, according to Samsung Securities
  • Trade Minister Joo says decline in exports to worsen in July
• Aussie and kiwi both jump 0.7%, moving sharply higher on Aso’s speech
  • Australia CPI will need to miss est. by wide margin for AUD to weaken significantly as market has priced in further RBA easing: Analysis
  • 2Q CPI data tomorrow; median est. +1.1% y/y vs +1.3% prior; bond yields rising ahead of data, 3-yr up 3 bps at 1.507%, 10-yr rises 1 bp to 1.927%
  • New Zealand’s June trade surplus at NZ$127m vs NZ$150m est., revised NZ$348m prior
  • 2Q exports rise on log, kiwifruit shipments
• Ringgit’s decline extends to seventh day, longest stretch since May-June 2015, as lower oil prices continue to weigh
  • Malaysian Institute of Economic Research keeps nation’s 2016 GDP growth forecast at 4.2%; 2017 seen at 4.5%-5.5%
  • Malaysian and Thai 5-yr credit protection costs rose most in a month yesterday
• Philippines’ trade deficit narrowed to $2b in May vs revised $2.3b in April and median est. $1.5b; peso little changed