Asia Summary and Highlights 18 May
Broader Sentiment Sour
Asia session
Far end JGB yields are jumping higher on Monday as market participants' fear on the fiscal position of Japan. The latest round of fear is triggered by new budget suggested from Japanese officials to finance another round of energy stimulus to cushion the prolonged oil shock. Both 10yr and 30yr JGB yields have jumped more than 10% since the beginning of last week. USD/JPY is trading 0.12% higher at 158.90.
Broader market sentiment remain sour as there is no sign of a quick fix in Strait of Hormuz. Over the weekend, the strike of UAE's nuclear energy facilities are suggesting that Iran believe firmly in their leverage and will unlikely to yield. Major equity indexes are all in the red while Gold recovered from early losses. AUD/USD is trading 0.21% lower at 0.7133. NZD/USD is unchanged while USD/CAD rises 0.03% with both Brent and WTI up more than a dollar/b. Else, EUR/USD is down 0.04% and GBP/USD is down 0.01%.