Asia Summary and Highlights 27 May

Asia Session

The Japan April services PPI has come in strong at 3.1% y/y. The increasing inflationary pressure combines with BoJ's "hawkish" rhetoric, has kept market participants hopeful of a move from the BoJ when the fog of trade conflict with the U.S. fades.  USD/JPY is trading 0.07% higher, reversing earlier losses to 142.10 as JGB yields are falling faster than their U.S. Treasury Yields counterpart.

The broad risk sentiment  is soft on Tuesday. While the Chinese industrial profit looks good and was reinforced by state media, regional equities are still being offered though not as much as their U.S. counterparts.  USD has reversed its earlier traction to the south partially and see AUD/USD pressured to 0.6472, down 0.24% for the session, NZD/USD also down 0.34% to 0.5979 while USD/CAD rise 0.06%. Else, EUR/USD is down 0.04% and GBP/USD down 0.1%..