Major FX markets remained rangebound here during the timezone. The volatility seen after the US April inflation report didn’t carry through to Asia.
Major
FX markets remained rangebound here during the timezone. The
volatility seen after the US April inflation report didn’t carry
through to Asia.
Fresh
news flow was very light indeed and non-impactful.
On
the data front we had inflation data from China published. Consumer
level prices (CPI) eased further in April, to their lowest y/y since
February of 2021. Producer level prices (PPI) slumped deeper into
deflation, showing their biggest decline since May 2020. It appears
China will be exporting de/dis inflation for a while. Also, the low
readings on inflation pave the way for more stimulus, both monetary
and fiscal, should Chinese authorities want
to go down that path.
On
central bank news we had the Bank of Japan ‘Summary of Opinions’
from the most recent meeting in late April. Many board members saw
the need to keep monetary policy ultra-loose for the time being. Some
added that they saw growing signs of progress towards sustainably
achieving 2 per cent inflation. More in the bullet point on the
Summary above.
Asian
equity markets:
-
Japan’s
Nikkei 225 -0.2% -
China’s
Shanghai Composite 0% -
Hong
Kong’s Hang Seng -0.1% -
South
Korea’s KOSPI +0.4% -
Australia’s
S&P/ASX 200 -0.2%
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