The Chinese yuan pulled back from the strongest levels against the dollar in more than a year after the central bank set a weaker-than-expected official midpoint for the sixth consecutive session, indicating caution over the renminbi's rapid appreciation.
Meanwhile, yields on 30-year Japanese government bonds pulled back from record highs after Japan's chief cabinet secretary said the government is closely watching market moves.
Longer-dated bond yields had hit fresh peaks ahead of an expected rate hike from the Bank of Japan later this month.
The jawboning came as BOJ Governor Kazuo Ueda tempered expectations over how far the central bank would raise interest rates, saying there was uncertainty over the path ahead due to the difficulty estimating the country's neutral rate.
An auction of 30-year JGBs drew the highest demand in more than six years as record yields lured buyers, adding to the sense of relief in Tokyo over investor appetite to hold government debt.
The Indian rupee also weakened to a record against the greenback, breaking past the 90 to the dollar mark and adding pressure to the Reserve Bank of India when it meets on Friday and is expected to cut interest rates.
Equity markets have had a tepid session, with stocks off 0.1% outside of Japan, where the Nikkei 225 is surging 1.8%, led by a blowout 12.4% gain for Fanuc Corp. The industrial robot maker's shares have surged since they announced a collaboration with Nvidia earlier this week.
In early European trades, pan-region futures were up 0.6%, German DAX futures rose 0.5% and FTSE futures were up 0.3%.
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