June 28, 2024 06:05 GMT
MNI Asia Pac Weekly Macro Wrap
A round up of some of the key Asia Pac market developments from the past week.
EXECUTIVE SUMMARY
JAPAN
- Yen weakness remains in focus, as USD/JPY hit fresh highs back to 1986. The main data focus was on today’s Tokyo CPI print, which showed stronger than forecast core pressures. This adds to the case for further BoJ policy adjustments.
AUSTRALIA
- The stronger than expected May CPI print has seen August hike risks come back into focus. At one stage more than 50% was priced in for a 25bps move at the meeting. However, the RBA Deputy Governor did play down moving policy off one data point post the print. Focus rests strongly on the quarterly inflation print due at the end of July.
NEW ZEALAND
- New Zealand survey measures remain fairly weak in terms of business and consumer confidence. Encouragingly though, price measures/intensions are trending favourably towards RBNZ’s inflation target.
- The US became NZ’s second largest export destination in May reaching $1bn worth for the first time. But shipments to China remain weak and the improvement in the YTD overall trade deficit appears to have stalled.
SHORT TERM RATES
- Re-pricing of the RBA outlook was the main focus in the past week.
CHINA
- USD/CNY onshore spot remains very close to the top end of the daily trading band, leaving market focus on widening trading band risks. Increased odds of a return to the US Presidency for Donald trump (following Biden’s poor showing in the debate) may bring trade tensions/tariffs risks into greater focus.
SOUTH KOREA
- South Korea sentiment data has been mixed the past week. Business sentiment eased, although the export outlook held up. Consumer inflation expectations eased a touch.
ASIA EQUITY FLOWS
- Net outflows have been recorded the past week, which have been dominated by tech sensitive Taiwan.
See the attached below for more details.
Keep reading...Show less
298 words