Asia Summary and Highlights 4 Sep
China financial regulators consider cooling measures to temper stock market gains
Asia Session
Bloomberg reported that China weighs curbs on stock speculation as they would like to focus on steady gains. Regional equities are taking a beating as that is the nature of Chinese equity market. AUD/USD is trading 0.28% lower at 0.6525, NZD/USD is trading 0.22% lower at 0.5866 while USD/CAD rises 0.12%.
There has been reports that Japanese PM Ishiba may face fresh challenges, a remnant of the loss in previous election. It sparks speculation of policy uncertainty as the opposing party seems to be favoring more fiscal spending. USD/JPY is trading 0.14% higher at 148.23. Else, EUR/USD is up 0.09% and GBP/USD is up 0.12%.
North American session
July US job openings fell by 176k to the lowest level since September 2024 and the USD slipped in response. USD/JPY saw lows below 148 from 148.75, but elsewhere the response was modest, EUR/USD edging above 1.1660 from below 1.1650 and GBP/USD near 1.3440 from 1.3420. AUD/USD and USD/CAD saw very limited reactions.
Fed’s Waller reiterated his support for easing, Musalem was more cautious while Kashkari saw scope for rates to come down gently. The Fed’s Beige Book saw little change in activity or employment, but some tariff-induced pressure on prices.