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Regional Equities Pressured After China's 5-Year LPR Cut 10bps, CNH Weakens To 7.1800

CROSS ASSET

Regional Equities have been pressured in recent dealing, the Hang Seng is down ~1%, after China cut the 5-Year LPR 10bps. Economists were divided between a 10 and 15bp cut. A gauge of Hong Kong listed mainland developers fell ~3%. China mainland equities are around flat at this stage.

  • The USD has ticked higher, helped by the ~0.5% fall in the AUD post the RBA minutes. WTI futures have unwound an earlier gain and sit ~1% lower. SGX Iron Ore futures are down ~0.3%.
  • USD/CNH is close to session highs, last around 7.1800. This is biasing the rest of USD/Asia higher. USD/KRW spot last 1284/85.

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