Asia Summary and Highlights 10 Feb
Japan pushes fast budget passage as food tax cuts, funding debated
Asia Session
After her sweeping victory in the Lower House, Japanese PM Takaichi acted immediately to push her budget through with discussion continues for food tax cut. Takaichi has said earlier that she would not opt to debt issuance for the new food tax cut and seems to have calmed the market sentiment a tad. Now it looks more likely the Japanese government will tap into foreign reserves for the extra funding. USD/JPY is trading 0.32% lower at 155.37 with JGB yields all moderating,
The broader risk sentiment is undecided on Tuesday except Japanese equities. Japanese equities continue to benefit from PM Takaichi's sweeping win. Other major equity indexes are performing individually wjile previous metal is lower. AUD/USD is trading 0..28% lower at 0.7074. NZD/USD is trading 0.29% lower while USD/CAD is unchanged. Else, EUR/USD is down 0.04% and GBP/USD is down 0.13%.
European and North American sessions
The USD slipped across the board, losing around 0.8% overall, the decline accelerating in North America after NEC Director Hassett said slightly lower jobs numbers should be expected. This sent UST yields lower, more than reversing gains in Europe after China urged banks to curb exposure to USTs given market risk, which also weighed on the USD.
USD/JPY slipped below 156 from near 157 while EUR/USD advanced a big figure to 1.1920. AUD/USD rose to near .71 from near .70 while USD/CAD fell a big figure to 1.3560. CHF was particularly strong as EUR/CHF fell to .9130 from .9170. EUR/GBP spiked up to .8740 after Scottish Labour leader Sarwar called for PM Starmer to step down but a return to near .87 followed as Starmer’s entire cabinet expressed support for him.