Major FX remained in subdued ranges for the session.Japanese retail sales for January surprised to the topside while industrial output missed badly t
Major
FX remained in subdued ranges for the session.
Japanese
retail sales for January surprised to the topside while industrial
output missed badly to the downside.
- Retail
sales y/y came in at its 11th
consecutive monthly rise. This is encouraging news for the BOJ. The
but is of course (see next point) … - Industrial
production came in at its worst in eight months. Cars, vehicle parts
and chip making machinery led the fall. While weaker global demand
was cited the result does highlight the difficulties the Bank of
Japan will face in cutting back easing. Incoming Bank of Japan
Governor Ueda will tread carefully given the mixed messages economic
indicators are sending.
Data
from Australia showed retail sales in January rising better than
expected m/m. The “but” on this is that over the past quarter or so
there has been barely much growth in this indicator at all.
Reserve Bank of Australia rate hikes are impacting the consumer. The
Bank meet next Tuesday, March 7. A 25bp rate hike is as good as baked
in.
ANZ’s
New Zealand business survey showed confidence and activity barely
improved. Inflation pressure remained intense.
The
dip lower in the US dollar in overnight trade was reflected in a
lower USD/CNY mid rate setting today from the People’s Bank of
China compared with Monday’s.
Testimony
in the Diet (Japanese parliament) continued today for the two BOJ
Deputy Governor nominees. More in the bullets above, but as mentioned
major FX didn’t shift around too much. This includes USD/JPY.
Asian
equity markets:
-
Japan’s
Nikkei 225 +0.33% -
China’s
Shanghai Composite +0.08% -
Hong
Kong’s Hang Seng +0.4% -
South
Korea’s KOSPI +0.9% -
Australia’s
S&P/ASX 200 +0.5%
The sharp downdraft in the Chinese yuan is likely to ease back heading into the National People’s Congress this coming weekend.
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