Asia Summary and Highlights 27 Nov
Reuters reports Japan to boost short-term JGB issuance by ¥7tn to fund stimulus
Trump urged Japan’s Takaichi to soften tone on Taiwan in private call
Asia Session
Reuters reported that Japan will boost short-term JGB issuance by ¥7tn to fund stimulus. While it is significant amount of issuance, it seems to be less worrying for market participants as the longer dated JGB will not be touched. USD/JPY is trading 0.36% lower at 155.88.
Regional sentiment is more upbeat on Thursday with Japanese equities leading. USD is trading broadly lower against majors. AUD/USD is trading 0.26% higher at 0.6534, NZD/USD is trading 0.51% higher at 0.5727 following strong post-RBNZ gains while USD/CAD slips 0.08%. Else, EUR/USD is up 0.07% and GBP/USD is up 0.13%.
North American session
UK markets were volatile around the release of the budget which produced a fiscal tightening but with the tax increases back loaded. The package was eventually well received, with Gilt yields lower, EUR/GBP falling to .8760 after a brief bounce above .88, and GBP/USD up over a big figure from a low of 1.3125.
The USD saw a lift from stronger than expected data, initial claims falling to 216k from 222k and September durable goods orders rising by 0.5%, 0.6% ex transport. EUR/USD slipped to 1.1550 from 1.1580 but later reversed direction, in part on a very weak November Chicago PMI index of 36.3, rising to near 1.16. USD/JPY was little changed near 156.50 but USD/CAD fell to 1.4040 after reaching 1.41 while AUD/USD rose to .6520 from .6490.