Mixed sentiment is evident in the Asian markets with some Asian indices experiencing profit taking, following yesterday’s across the board gains. The Nikkei 225 which performed superiorly yesterday, closed the morning with losses, weighed by profit takers and a slightly stronger JPY. Nikon (-18.23%) has been one of the laggards, after the Co. cut profit forecasts and said price declines will probably continue. The Shanghai Comp. and the Hang Seng are trading in negative territory, ahead of the week long Chinese holiday next week for the Lunar New Year. We also heard news the PBOC injected CNY 410bln via 14 day reverse repos, achieving a weekly record high injection of CNY 662bn. The ASX 200 is the outperformer trading in positive territory amid better than expected Australian employment figures.
In the FX market, USD/JPY has trended lower to trade around the 93.50 level, after piercing above the 94 handle yesterday. The NZD showed weakness amid a lower than expected New Zealand Employment Change (Q4) Q/Q -1.0% vs. Exp. 0.4% and a lower Participation Rate (Q4) Q/Q 67.2% vs. Exp. 68.4%, signalling the number of people employed or looking for work has decreased. The EUR/USD and the GBP/USD trade in narrow ranges ahead of tomorrow’s ECB and BoE policy announcements.
Looking forward, Japanese Leading Index is scheduled to be released at 0500GMT/2300CST. However, the focus remains on the BoE and ECB rate decisions later.
As of 0250GMT:
ASX200 (+0.32%), Nikkei 225 (-0.78%), Shanghai Comp. (-0.75%), Hang Seng (-0.40%), KOSPI (-0.08%)
06 Feb 2013 - 21:52 - Fixed Income - Source: RANsquawk
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