As Asian markets head through the mid-point of the trading day, the majority of equity markets are trading in the green amid a positive tone, despite the looming debt ceiling issue stressed by President Obama during the US session. The Nikkei 225 has been the standout market after participants came back from their 3-day weekend. The local index breached its highest level since April 2010, benefited by exporters on the back of the extended losses in JPY. Expectations for next week’s BoJ meeting continue to push USD/JPY to move higher ahead of the psychologically important 90.00 level after briefly touching a new 2.5 year high in yesterday’s session.
Elsewhere in Chinese markets, we have seen the Hang Seng and Shanghai Comp. paring their opening losses, supported by China Securities Regulatory Commission chair who said yesterday that the quota for offshore funds to invest in mainland markets could be increased 10 times. Meanwhile, the Australian ASX 200 is trading in marginal positive territory with AUD declining versus most of its major counterparties ahead of this Thursday’s release of the unemployment rate, which may show an increase. In terms of AUD/USD, we heard market talk that there are German and US names are selling this pair.
Over in fixed income, 10yr JGB’s have been on a steady rise since the open with yield falling below 0.8% for the first time since the 28th December as participants position themselves amid increasing expectations for the BoJ to expand asset purchase scheme.
Looking forward, Japanese machine tool orders are scheduled to be released at 0600CST/0000GMT.
As of 0234 GMT:
ASX200 (+0.11%), Nikkei 225 (+1.26%), Shanghai Comp. (+0.48 %), Hang Seng (+0.11%), KOSPI (-0.51%)
14 Jan 2013 - 21:36 - Fixed Income Important - Source: RANsquawk
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