Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as risk atmosphere turns upbeat on potential easing of Trump's tariff to an extent. The biggest winner is KRW by 2.5%, followed by THB 1.69%, MYR 1.01%, SGD 0.85%, INR 0.75%, PHP 0.68%, TWD 0.57%, CNY 0.35%, CNH 0.3%, HKD 0.05% and IDR 0.03%.

USD/CNH is trading lower at 7.2875 from 7.3094 previously closed. Onshore spot market is trading lower at 7.2919 from 7.3175 previously closed. 12 month NDF followed the offshore market and is trading lower at 7.1056 compared to 7.1409  previously closed.

USD/IDR spot market is trading lower at 16796 from 16823 previously closed. 1 month NDF is trading lower at 16843 from 16867 previously closed.

USD/INR onshore spot market reopened lower at 86.05 from 86.70 previously closed. 1 month NDF is trading lower at 86.22 from 86.53 previously closed.

NA Session

US data was mixed, March PPI was weaker than expected at -0.4%, -0.1% ex food and energy, but the preliminary April Michigan CSI plunged to 50.8 from 57.0. Inflation expectations surged, the 1-year view to 6.7%, the highest since 1981, and the 5-10 year view to 4.4%, the highest since 1991. Fed talk remained mostly hawkish. The data was not a major factor for the markets.  

Early weakness in equities and gains in long-term UST yields gave way to a corrective rise in equities and a corrective flattening in bonds. USD/JPY rose to 144 from 142. EUR/USD fell from highs above 1.14 to lows below 1.13 before a modest late correction higher. EUR/GBP had little direction but EUR/CHF was lower. USD/CAD was quiet but AUD/USD saw some late gains to reach .63.