Asia Summary and Highlights 10 July
Japan will seek measures encouraging GPIF and other pension funds to raise investment in Japanese financial assets
U.S. official said late Thursday that Washington remains committed to a resolution with Iran
Asia Session
Japan FM announced that the Japanese government will seek measures encouraging GPIF and other pension funds to raise investment in Japanese financial assets. It seems to be one of the act they would prefer to stabilize JGB yields while allowing BoJ's independency. GPIF, being the largest public pension fund, could seize a more important role in the JGB market and absorb more JGB when the BoJ tapers. USD/JPY is trading 0.49% lower at 161.56 with JGB yields lower across the curve.
With weekend coming soon, market participants are cautious not to being caught wrongfooted. While broad market sentiment is hopeful for limited escalation, it is hard to give a timeline when the geopolitical tension will ease. U.S. major equity indexes are slightly in the red yet regional equities are more upbeat. AUD/USD is trading 0.2% higher at 0.6955. NZD/USD is trading 0.35% higher while USD/CAD slips 0.09% on higher oil. Else, EUR/USD is up 0.12% and GBP/USD is up 0.17%.