Asia Summary and Highlights 28 Nov
Tokyo CPI Headline 2.7% y/y for November
S&P cut Vanke to CCC-, flags deepening distress
Asia Session
All three items for Tokyo CPI landed at 2.7% y/y for November. It is unchanged with the figure in October and remain above BoJ's inflation target. The inflationary picture is showing little moderation into the year end and could persuade the BoJ to hike in December. USD/JPY is trading 0.01% higher at 156.30 with both U.S. Treasury and JGB yields higher.
It is reported that Chinese property developer Vanke has sought for a delay of payment for its onshore bond. It is the first time for Vanke to seek a delay and shakes market as Vanke has been on the conservative side of leveraging. Market confidence further deteriorate when S&P cut Vanke to CCC- grade and flags deepening distress. AUD/USD is trading 0.12% lower at 0.6526, NZD/USD is trading 0.23% lower at 0.5716 while USD/CAD rises 0.03%. Else, EUR/USD is down 0.07% and GBP/USD is down 0.04%.