Dovish BoJ Remarks Lift Broader  Risk Appetite

Dovish remarks from Deputy BoJ Governor Uchida have given a broader lift to risk appetite in the Asia Pac region. The BoJ official stated that the central bank won't raise rates when markets are unstable.

• USD/JPY hit highs of 147.48 a short while ago, but sits back under 147.00 now, still 1.7% weaker in yen terms. We were around 144.70/80 before Uchida headlines cross. Japan JGB yields are lower for the day, off earlier highs, the 10yr last under 0.90%.
• Japan equity markets have surged as well (Topix +4%), after losses in the first part of trade. this is also helping US equity futures, with the Nasdaq +0.60% (after opening off -0.60%).
• US yields are also ticking higher, led by the front end 2yr above 4.00%, +3bps firmer.
• NZD/USD is around 0.6000, up 0.70%, while AUD/USD is near 0.6545 still lagging post the Q2 NZ jobs data.
• In the commodity space, oil is ticking higher, but only modestly, while gold is struggling for meaningful upside (last near $2384).