Asia Summary and Highlights 17 Oct
Japan LDP, opposition CDP, agree to hold vote to decide next prime minister on Oct 21
Asia Session
The broad risk sentiment is sour on Friday as we see major equity indexes in the red, led by regional equities. Major commodities are also seen lower so far in the session. It seems to be market participants positioning themselves before the weekend after a volatile week. AUD/USD is trading 0.25% lower at 0.6468, NZD/USD is trading 0.14% lower at 0.5732 while USD/CAD slips 0.09%.
There seems to be more political turbulence for Japan by the end of week as we hear the Japan LDP and opposition CDP agreeing to hold vote to decide next prime minister on Oct 21. It seems to be gaining more traction that Taikachi may not be the next Japan prime minister and we see JPY continue to be supported. USD/JPY is trading 0.22% lower at 150.08. Else, EUR/USD is up 0.17% and GBP/USD is up 0.11%.
North American session
The USD slipped as equities took a tumble led by financials due to concerns over two regional banks, dragging UST yields and USD/JPY lower, the latter falling around a big figure to 150.30. EUR/USD advanced to near 1.17 from 1.1650. EUR/GBP edged above .87 but EUR/CHF slipped below .9270 after an early move above .93 as risk sentiment soured. AUD/USD saw modest losses below .65 but USD/CAD remained close to 1.4050.
Early comments from Fed’s Waller, backing a 25bps easing in October but expressing caution beyond that gave UST yields a brief lift that was more than fully erased later. US data saw a weaker Philly Fed manufacturing index of -12.8 from September’s strong 23.2, but less weakness in the detail. October’s NAHB homebuilder’s index bounced to 37 from 32 and the budget deficit showed a marginal dip in the fiscal year to September assisted by tariff revenues.