Asia Summary and Highlights 5 Nov
The September total cash earnings rose 1.9% for Japan
Asia Session
Despite September labor cash earnings rose 1.9% for Japan, a rebound from 1.4% in August, it remains below 2%. Real wage stays in negative territory as headline inflation lingers around 3%. Such may affect consumption behaviour in the coming quarter. USD/JPY is trading 0.15% lower at 153.85.
Regional sentiment is performing better than U.S.major equities. It seems to be related to the report that China made purchases of two cargoes of US wheat for December shipment while banning foreign AI chips in local data centre. AUD/USD is trading 0.07% higher at 0.6511, NZD/USD is trading unchanged while USD/CAD is down 0.05%. Else, EUR/USD is up 0.16% and GBP/USD is up 0.09%.
North American session
Some stronger than expected US data was released for October, firstly a 42k increase in the ADP employment report and secondly an ISM services index of 52.4, up from 50.0 in September. This lifted USD/JPY, with the latter release bringing a rise above 154, if not by very far. EUR/USD dipped on both data releases but ended little changed near 1.1490
Elsewhere the market focused more on risk-on trading. EUR/GBP slipped to near .880 while EUR/CHF remained firm near .9310. AUD/USD edged above .65 while USD/CAD reversed its European gains, slipping back to 1.4110. Canada also released some stronger data, its S and P services PMI bouncing above neutral to 50.5 in October from 46.5 in September.
The US Supreme Court held hearings on the challenge to Trump’s tariffs, and some conservative justices sounded sceptical on their legality.