ASIA-PAC MARKET WRAP: Asia traded indecisive amid holiday-quietened trade; USD remained weak after miss on US data and FOMC minutes release

A mixed tone was observed in Asia with the region indecisive amid holiday-quietened trade, in which Japan observed a national holiday and the US headed into Thanksgiving. ASX 200 (Unch.) was choppy as weakness in the top-weighted financial sector nullified the resilience of commodity-related stocks, while this also followed a subdued close in Wall St counterparts. Chinese markets conformed to the varied tone with early outperformance seen in the Hang Seng (+0.1%) to extend above the 30,000 level, although some of the gains were pared amid weakness in its mainland peers with the Shanghai Comp. (-1.1%) weighed by consumer stocks and as Shenzhen small caps resumed their sell-off.

FX markets were relatively quiet during Asia trade amid holiday conditions and a lack of overnight releases. Nonetheless, USD remained weaker across the board from the miss on US Durable Goods and release of FOMC minutes which stated that many viewed a near-term hike was warranted, but that concerns regarding inflation were also widely shared. This earlier helped EUR/USD and GBP/USD reclaim the 1.1800 and 1.3300 handles respectively, while the PBoC also took its swipe at the greenback and adjusted the reference rate to its strongest in over a month. Elsewhere, JPY-crosses reversed some of their recent losses despite the absence of Japanese participants, and SGD failed to benefit from firmer than expected upward Q3 GDP revisions amid fatigue.

23 Nov 2017 - 05:51- Important- Source: RANsquawk

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