Asian Market Overview – Steady Yen and Property Values in China

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The Asian currencies initiated the session as a low contender after having incurred high losses in the US session. The Finance Minister of Japan stated that the BOJ announced that it has retained the yen position well. The significance of maintaining the level steady was also stressed. A close inspection of the currency pairs revealed the USD/JPY to have increased to a level of 93.40, after having fallen to a position of 92.75 in the U.S. session.

On a more general note, China National Bureau of Statistics (NBS) recorded that property values are anticipated to move in stable trends. This reduced concerns related to the slipping property prices in the Tier 2-4 cities. The lack of worry, evident from the NBS, has resulted in short coverings during the preceding couple of days among the sellers. As compared to metals, high beta FX, and regional indices, the JPY and USD are both witnessing a low trend. Holding the predictions of Q4 GDP, the reports related to Singapore were significantly brighter. With the Australian economy performing better, the impact is also felt on the AUD, which is visible from its comparatively higher trends.

A sharp rise was observed in the USD/SGD, to a high value of 1.2427, in the U.S. session, ahead of gradually retracting to a value of 1.24. The USD/SGD slipped ten pips, supported by higher-than-anticipated GDP data in the Q4, and finally positioned at a low value of 1.2377 for the session. The AUD improved following announcements related to low rates. The AUD/USD increased 60 pips after the announcements, retrieving the 1.03 handle on the way to 1.0320 high recorded late during the session.

Commodity news recorded SPDR Gold Trust ETF daily assets to have slipped by 8.9 tons to a value of 1,290.3 tons, which is reported as the lowest from 1289.4 on Sept 12. In silver, the daily assets of iShares Silver Trust ETF increased from 10,539 tons to a value of 10,602 tons, which is the highest considering value of 10,690 noted on Jan 23.

Tokyo’s Nikkei 225 Index regained 0.7% to value of 11,385.94. The Shanghai Composite Index, China’s major highlight also moved low 0.5% to value of 2,314.15. The Kospi, related to Seoul increased 0.2% to a value of 2,018.89.