HALISTER1: INSIDE ASIA: Yen, Won Among Decliners as Holiday Closes Markets

INSIDE ASIA: Yen, Won Among Decliners as Holiday Closes Markets

(Bloomberg) -- South Korea’s won, Japan’s yen and the Philippine peso decline while New Zealand’s dollar advances as most major emerging markets in Asia are shut for public holiday.
  • Onshore financial markets are closed in China, Hong Kong, Taiwan, Singapore, Malaysia and Thailand
  • Won weakens for second day
    • South Korea’s current-account surplus widened to $10.09b in March, biggest since Sept., from revised $7.17b in Feb.
    • Average daily FX transaction volume rose to record $52.99b in 1Q, according to Bank of Korea
    • North Korea may conduct fifth nuclear test around May 6: Yonhap
  • Kiwi strengthens for third day
    • Macro accounts are buying NZD/USD, testing option- related offers around 0.7000, according to an Asia-based FX trader
  • Aussie steady
    • Melbourne Institute’s inflation gauge rose 0.1% m/m in April after being unchanged prior month; April manufacturing index fell 4.7 points from March to 53.4; NAB’s business confidence index fell 1 point in April to 5
  • Japan’s 20-year yield drops to all-time low
    • Bank of Japan says it plans new Consumption Activity Index
    • Yen declines following weekend report by Nikkei citing Finance Minister Aso as saying one-sided speculative movements in dollar-yen rate are extremely concerning and Japan will take action as necessary
    • USD/JPY approaching “policy zone” of 100-105, Shusuke Yamada, chief Japan FX strategist at Bank of America Merrill Lynch, writes in note today
    • JPMorgan says yen may break 100 per USD amid friction with U.S.
    • SocGen sees high risk of USD/JPY testing 105 this week
    • Democratic Party of Japan President Katsuya Okada says PM Abe relies heavily on monetary and fiscal policy instead of structural reform: FT
  • Rupiah advances
    • Indonesia inflation slowed for first time this year, to 3.60% in April from 4.45% in March; median est. was 3.81% increase
  • Rupee steady
    • Reserve Bank of India’s forward dollar positions for deals maturing within one year were net short $2.49b in March vs short position of $193m end-Feb., Bloomberg calculations based on data from central bank’s website show
  • Thailand’s consumer prices rose in April for first time since Dec. 2014, up 0.07% on year as tax increase raised tobacco costs
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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