The Nikkei 225 opened lower by over 1% and closed for the morning in firm negative territory as markets take the result of the Bank of Japan's meeting into consideration and digest the comparatively moderate accommodation detailed in the announcement. Exporters, including Nissan Motor and Nikon, are suffering most after yesterday the JPY rose to its highest level since May 2012.
Expectations are creeping in that the RBA could cut rates in the near future following the softer than expected Australian Consumer Price Y/Y release, printing at 2.2% vs. Exp. 2.4% (Prev. 2.0%). We saw AUD/USD initially move lower by 16 pips and keep ticking lower throughout the session. Market participants are likely to shift their focus to tomorrow’s Chinese HSBC manufacturing PMI, which would help shape the near term outlook of the local currency. Meanwhile, the ASX 200 is one of the outperformers, led by consumer goods and basic materials sectors, among which, St Barbara is the top gainer after the Co.’s gold production rises to 92,691 oz from 77,730 oz on quarter.
Looking forward, Singapore CPI for December is scheduled to be released at 0500GMT/2300CST.
As of 0238 GMT:
ASX200 (+0.27%), Nikkei 225 (-0.77%), Shanghai Comp. (+0.28%), Hang Seng (+0.08%), KOSPI (+0.01%)
22 Jan 2013 - 20:38 - Fixed Income Data - Source: RANsquawk
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