The data point focus during the Asian session was on February CPI data from Japan. The headline rate fell hard from January:Headline rate 3.3% y/y e
The
data point focus during the Asian session was on February CPI data
from Japan. The headline rate fell hard from January:
Headline
rate 3.3% y/y
expected
4.1%, prior 4.3%
But
both of the core measures were much more ‘sticky’”
CPI
ex-Fresh Food 3.1% y/y (this is the ‘core’ rate)
expected
3.1%, prior 4.2%
CPI
ex Food, Energy 3.5% y/y (this is ‘core-core’ rate, the closest to
the US measure of core CPI)
expected
3.4%, prior 3.2%
The
Bank of Japan have continued to forecast inflation to fall from
around September/October. New Bank of Japan Governor Ueda begins in
his role from the second week in April. So far he has not shown much
inclination to speed towards tighter policy.
On
the session USD/JPY had a shunt lower, from highs above 130.80 to a
six week low under 130.30. As I post it has recovered to be mid-range
circa 130.50.
Otherwise
across the majors board ranges were more subdued and the USD was a
touch stronger. CHF, CAD, AUD, EUR, NZD all down against the big
dollar.
In
other data news Australia’s flash March PMIs slumped into
contraction. Japan’s flash March PMIs showed manufacturing remained
in contraction (with a slight improvement from February) while
services continued their expansion run and the Composite hit its
highest in 9 months.
The
PBOC set the CNY 300+ points stronger at the reference rate today,
confirming CNY’s upmove on Thursday.
In
geopolitical news the US conducted air strikes against Iranian
facilities in Syria.
Asian
equity markets:
-
Japan’s
Nikkei 225 -0.26% -
China’s
Shanghai Composite -0.65% -
Hong
Kong’s Hang Seng -0.49% -
South
Korea’s KOSPI -0.65% -
Australia’s
S&P/ASX 200 -0.26%
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