A sell off in the US equity markets has once again set the tone for the performance of Asian equity markets. Fears over how the US fiscal cliff will affect the countries’ GDP and worries over Greece continue to plague the markets. Asian equities are firmly in the red with the South Korean KOSPI being the largest underperformer while at the same time the Korean central bank kept rates unchanged (2.75%) which was expected by all analysts; saying that the economic slowdown is easing and the economy may improve in the coming months
So far the highlight of the session has been the release of the Reserve Bank of Australia’s statement on policy that said it has cut 2013 GDP on weaker mining and fiscal tightening; consequently this saw a blip in AUD to the downside but the move was short lived as the price has gravitated to strikes seen at the 1.0400 level later today.
In the FX market we have had more calls in Chinese press for China to widen the CNY trading band as soon as possible to mitigate the impact of potential large capital outflows to the domestic economy; these comments come at an interesting time as we are currently witnessing the hand over of power in the world’s second largest economy.
Looking forward we have more Chinese data; this time in the form industrial production which will be closely scrutinised as it is a large component of the countries GDP, with Chinese retail sales also on the docket.
08 Nov 2012 - 20:29 - - Source: RANsquawk
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