Asia Markets Update On October 31st, 2019

Asia Markets Update On October 31st, 2019

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Japanese Yen appreciates after BOJ's policy rate decision, Asian markets in green, Gold back above $1,490 Mark - Thursday, October 31, 2019.

Market Roundup

  • BOJ keeps policy interest rate unchanged at -0.10 pct.
  • China’s manufacturing PMI stands at 49.3 vs 49.8 previous release (expected 49.9).
  • China’s non - manufacturing PMI stands at 52.8 vs 53.7 previous release (expected 53.7).
  • Japan’s industrial production m/m stands at 1.4 pct vs -1.2 pct previous release (expected 0.4).
  • South Korea’s industrial production y/y stands at 0.4 pct vs -3.3 pct previous release (expected -1.1).
  • South Korea’s retail sales m/m stands at -2.2 pct vs 3.9 pct previous release.

Economic Data Ahead

  • (0300 ET/0700 GMT) German retail sales m/m, y/y.
  • (0345 ET/0745 GMT) France CCPI, HICP.
  • (0400 ET/0800 GMT) Spain GDP.
  • (0430 ET/0830 GMT) Hong Kong GDP q/q, y/y.
  • (0500 ET/0900 GMT) Italy unemployment rate.
  • (0500 ET/0900 GMT) Spain current account.
  • (0530 ET/0930 GMT) South Africa PPI.
  • (0600 ET/1000 GMT) Italy CPI, HICP.
  • (0600 ET/1000 GMT) India Federal fiscal deficit.
  • (0600  ET/1000 GMT) Euro zone CPI, core CPI, GDP, unemployment rate.
  • (0700 ET/1100 GMT) Italy GDP.
  • (0800 ET/1200 GMT) India infrastructure output.
  • (0800 ET/1200 GMT) Brazil unemployment rate.
  • (0800 ET/1200 GMT) South Africa trade balance.

Key Events Ahead

  • (0230 ET/0630 GMT) BOJ Press conference.
  • (0400 ET/0800 GMT) ECB’s De Guindos speaks.

 

FX Recap

USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched down 0.30% to 97.35.

EUR/USD: The euro rises noticeably against U.S. dollar after FOMC’s interest rate decision. It made intraday high at $1.1170 and low at $1.1147 mark. A sustained close above $1.1150 will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, A consistent close below $1.1079 will drag the parity down towards key supports around $1.1026 and $1.0852 levels respectively.

USD/JPY: The Japanese yen strengthens in early Asia on robust industrial production data. Today BOJ keeps benchmark interest rate unchanged at -0.10 pct. The pair is currently trading around 108.68 mark. It made intraday high at 108.90 and low at 108.58 levels. A sustained close above 108.93 is required to take the parity higher towards key resistances around 109.62, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 108.83 will drag the parity down towards key support around 108.38, 106.90 and 104.20 marks respectively.

GBP/USD: The pound trades marginally higher against U.S. dollar and stabilizes above $1.2900 mark. The pair slipped after U.K. Prime Minister Boris Johnson failed to win support for an early general election. Now, UK parliament approves early general election on December 12. A sustained close below $1.2821 requires for dragging the parity down towards key support around $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.2973, 1.3058, 1.3140 and 1.3226 levels respectively.

AUD/USD: The Aussie trades marginally higher against U.S. dollar and currently trading around $0.6920 mark. The pair made intraday high at $0.6929 and low at $0.6896 levels. A consistent close below $0.6820 requires for downside rally. On the other side, a sustained close above $0.6902 will take the parity higher towards $0.6977 and $0.7076 levels respectively.

NZD/USD: The New Zealand dollar strengthens on robust business confidence data. Pair made intraday high at $0.6432 and low at $0.6384. A sustained close above $0.6422 requires for the upside rally. Alternatively, a consistent close below $0.6349 will take the parity down towards key supports around $0.6236 and $0.6196 levels respectively.

Equities Recap

  • Japan’s Nikkei was trading 0.33 pct higher at 22,919.50 points.
  • Australia’s S&P/ASX200 was trading 0.40 pct lower at 6,663.55 points.
  • ong Kong's hang seng index was trading 1.05 percent higher at 26,952.48 points.
  • Taiwan stock was trading 0.02 percent higher at 11,382.37 points.
  • South Korea’s kospi was trading 0.93 percent higher at 2,099.59 points.
  • India’s NSE Nifty was trading 0.65 pct higher at 11,920.80 points while BSE sensex was trading 0.66 points higher at 40,315.55 points.

Commodities Recap

  • U.S. Crude Oil WTI Futures were dropped 0.1% to $55.01. International Brent Oil Futures gained 0.3% to $60.44.
  • Gold trades marginally higher on Thursday and touches $1,499 mark in early Asia. Gold faces strong resistance at $1,505 mark and sustained close above targets key resistances around $1,532 and $$1,552 mark respectively. Alternatively, a consistent close below $1,487 mark will drag the parity down towards $1,472 and $1,440 mark respectively.

Treasuries Recap

  • The Australian government bonds slipped during Asian session Thursday amid a muted trading day that witnessed data of little economic significance as investors shrugged-off the 25bp interest rate cut by the Federal Reserve late yesterday. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 1-1/2 basis points to 1.156 percent, the yield on the long-term 30-year bond hovered around 1.726 percent and the yield on short-term 2-year slumped nearly 3 basis points to 0.853 percent.
  • The Japanese government bond yields slumped at close Thursday after the Federal Reserve adopted a 25bp interest rate cut at its policy meeting in the overnight session, as was widely anticipated by market participants. However, the Bank of Japan’s (BoJ) monetary policy meeting, concluded early today, delivered no change, failing to create any major impact on domestic bond market. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged 13 basis points to -0.138 percent, the yield on the long-term 30-year slipped nearly 1-1/2 basis points to 0.399 percent and the yield on short-term 2-year slumped 18 basis points to -0.234 percent.

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