ASIA-PAC MID-SESSION UPDATE: Asia trades indecisive after Wall St losses, while earnings also take focus
Asia equity markets trade with an indecisive tone following the downbeat finish on Wall St. where sentiment was dampened by Trump’s threats to shutdown the government and also terminate NAFTA. ASX 200 (+0.2%) is mildly positive amid strength in materials names and with the largest movers in the index driven by recent earnings, while Nikkei 225 (-0.1%) is negative as exporters suffer after USD/JPY briefly slipped to below 109.00. Elsewhere, Shanghai Comp. (-0.2%) and Hang Seng (-0.1%) are choppy as the PBoC’s refrained from operations which resulted to a CNY 100bln daily net liquidity drain, while earnings also take focus and the recent gains in the energy complex has resulted to outperformance in related stocks.
FX markets lack solid direction amid a light calendar and with participants looking ahead to the looming Jackson Hole symposium. Nonetheless, USD attempts to nurse some of the losses seen in the wake of President Trump’s worrisome comments, but the rebound has been minimal with the PBoC also strengthening its mid-point in reaction to the subdued greenback. Elsewhere, JPY remains firm after the risk averse tone seen in the prior session, although USD/JPY and JPY-crosses are off their worst levels with the former managing to regain the 109.00 handle, while NZD is choppy having failed to sustain the support from better than expected trade figures.
Finally, 10yr JGBs are relatively flat with the mild support from a cautious tone in Japanese stocks counter-balanced as participants remain side-lined heading into the enhanced liquidity auction later.
24 Aug 2017 - 03:17- Important- Source: RANsquawk
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