Asia stocks are mostly higher after sentiment rolled over from Wall St where all majors gained at least 1% as trade war fears somewhat abated and amid encouraging data releases. This positive momentum gathered pace across Asia-Pac bourses with ASX 200 (+1.3%) also underpinned by strength across the energy sector, and Nikkei 225 (+2.1%) outperforms with exporters cheering a weaker JPY. Elsewhere, China is mixed with the Hang Seng (+1.1%) joining in on the elation, while the Shanghai Comp. (-0.3%) underperforms amid a glum tone in the mainland after the PBoC refrained from liquidity operations.
In FX markets, JPY weakened across the board on safe-haven outflows amid the heightened global risk appetite with USD/JPY firmly above 106.00 and JPY-crosses extending on the prior day’s highs. USD is also softer overnight in which the DXY slipped back below the 90.00 level to the benefit of EUR/USD, while GBP/USD is less decisive amid Brexit overhang. Elsewhere, AUD/USD gained on a weaker greenback but saw brief pressure following a miss on Current Account and Retail Sales data, while focus shifts to the RBA rate decision later.
Finally, 10yr JGBs are subdued with demand sapped amid gains across riskier assets and with participants sidelined ahead of today’s 30yr auction