ASIA-PAC MID-SESSION UPDATE: Nikkei 225 leads Asia higher across the board on weak JPY and solid GDP revision

Asia equity markets take impetus from the positive tone in US where all indices finished positive and tech continued its rebound, while Congress also voted to pass the stop-gap spending bill to fund the government till December 22nd and avert a shutdown. ASX 200 (+0.3%) and Nikkei 225 (+1.1%) are higher with the latter outperforming as exporters benefit from a weaker currency and after a stellar upward revision to Q3 GDP figures. Hang Seng (+0.5%) and Shanghai Comp. (+0.2%) are also in the green but with gains capped in the mainland after PBoC refrained from open market operations for a total net weekly drain of CNY 510bln, and with participants tentative ahead of the latest Chinese Trade data.

In FX markets, USD/JPY and JPY-crosses are firmer with the pair above the 113.00 level as the heightened risk appetite spurs outflows from safe-haven JPY, and with the greenback underpinned after the US Congress voted to avert a government shutdown. Elsewhere, other major currencies are flat with AUD/USD lying in wait for the China data, while GBP/USD also takes a breather after yesterday’s Brexit deal optimism buoyed the pair to near the 1.3500 handle.

Finally, 10yr JGBs saw mild gains and just about broke above 151.00 despite the broad positive risk tone, amid the BoJ’s presence in the market for JPY 840bln of government bonds.

08 Dec 2017 - 02:17- ForexResearch Sheet- Source: Newswires

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