Asia Summary and Highlights 31 July

Asia Session

The steady Japanese labor report did not affect the JPY as market participants stay laser sharp about the BoJ decision. The suspected intervention, a classic five figure move, has seen partial recovery. Strong regional sentiment seems to have given a push. As per forecast, BoJ kept rates unchanged at 1%. It is voted 8-1 with Takata suggesting a quicker response from the BoJ on demand driven inflation. However, the CPI forecast is sending a mixed signal on lowered 2026 CPI and marginally revised higher 2027 CPI. USD/JPY is trading 0.72% higher at 160.65.

It is a fascinating Friday with KOSPI rose by more than 17%, after Situational Awareness sold a big chunk of their portfolio to Citadel. You don't see that everyday despite the heavy concentration of Korean equity index. Regional equities in Japan and China are also upbeat while HK equities lag. U.S. major equities are also in the green. AUD/USD is down 0.02%, NZD/USD down 0.22%, EUR/USD down 0.16%, GBP/USD down 0.14% while USD/CAD rises 0.05%.