At the halfway point of today’s Asian session, price action across the various asset classes remains on the light-side with generally thinner volumes due to the forthcoming holidays. There have been little catalysts in today’s session to drive the markets’ direction. The major Asian indices trade with a slight positive tone following general risk-off sentiment in early trade, which was driven by the looming US fiscal cliff talks, as it seems it maybe difficult to get a quick deal.
The Japanese markets are closed today, celebrating their emperor’s birthday. However, over the weekend, Japan’s PM-in-waiting Shinzo Abe has threatened to revise the law governing the Bank of Japan if it refuses to introduce a 2% inflation target at its January policy meeting, which might affect Japanese markets when they resume trade. Over in Australia, the ASX 200 is trading in minor positive territory leading up to Christmas period, led by Telecommunications and Utilities sectors. Do note, Australian markets will be closing early today at 0310GMT/2110CST.
In terms of the currency markets, USD/JPY has moved to the upside with JPY seeing weakness across the board after we heard over the weekend that Abe noted that a level of around 90.00 in USD/JPY would support the profits of Japan’s exporters.
Looking forward, the session is expected to remain light on tier-1 macroeconomic data although Singapore CPI data is due to be released at 0500GMT/2300CST.
As of 0240 GMT:
ASX200 (+0.22%), Shanghai Comp. (+0.30%), Hang Seng (+0.16%), KOSPI (+0.17%)
23 Dec 2012 - 21:40 - Forex Bank Speaker - Source: RANsquawk
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