Asia Summary and Highlights 7 Nov
Japanese September household spending +1.8% y/y
U.S. blocks Nvidia’s scaled-down AI chip sales to China
Asia Session
The September Japanese household spending continue to expand at +1.8% y/y. However, month to month data is showing a contraction of 0.7%. Private consumption continues to be dragged by negative real wage and would unlikely to be upbeat. USD/JPY is trading 0.11% higher at 153.23 with U.S. Treasury outperform JGB yields.
The broad risk sentiment remain weak and headlines like U.S. blocks Nvidia’s scaled-down AI chip sales to China definitely do not help. Despite Trump previously hints relaxation of chips export, it seems he had not received enough concession from China to allow that to happen. Major equity indexes are all in the red with Nikkei and HSI leading losses of more than a percent. AUD/USD is trading unchanged 0.6479, NZD/USD is trading 0.23% lower while USD/CAD rises 0.04%. Else, EUR/USD is down 0.09% and GBP/USD is down 0.14%.
North American session
The Bank of England left rates unchanged but the 5-4 vote was a little closer than the markets had expected, and the GBP slipped on the news, though the fall was more than fully reversed, EUR/GBP slipping to .8790 from .88 before the decision, and GBP/USD rising to 1.3145 from 1.3095.
The USD was weaker, as were equities, due to some weak data on US labor markets. The monthly survey from Challenger, Gray and Christmas reported 153,074 layoffs in October, up sharply from 55,727 in October 2024 and the highest for an October since 2003. A survey from Revelio Labs estimated that non-farm payrolls had fallen by 9k in October, on a 22k fall in government. USD/JPY briefly touched below 153 from 153.70 while EUR/USD advanced to 1.1540 from 1.1520. Equity weakness weighed on the commodity currencies, which ended weaker if off their lows, AUD/USD near .6480 from 1.6510 and USD/CAD at 1.4120 from 1.41.