ASIA WRAP: BoK Cuts Rates As Expected


*BoK slashes base rate by 25bps to 1.25%
*NZ quarterly CPI beats
*ASX Futures soar to 6,736



FX:

  • FX markets caught a broad USD bid through Asia after news broke that the US House of Reps approved a Hong Kong Human Rights and Democracy Act. It still needs to go through the Senate though it remains to be seen how much it might impact US/China trade negotiations. China has said it will retaliate if enacted.
  • AUDUSD -0.25%.
  • NZDUSD -0.35% tested 0.632 on decent CPI prints before broader developments took over. 
  • GBPUSD -0.22%.
  • USDJPY -0.16%.
  • USDCAD +0.1%.
  • USDKRW +0.25% didn't react to the BoK rate cut given it was priced in. 
  • USDCNH +0.27%.

Equities:

  • Asian equities have soared despite weakness in US and European benchmarks.
  • ASX cash +1.27% was led higher by gains across resource stocks that benefitted from stronger Gold, Brent and Nat Gas prices. Afterpay (APT.AX) however slumped -7.2% after UBS said the share price would halve by the end of the year - mirroring our bearish views.
  • ASX Dec Futures +1.3% finish at 6,736. A break above 6,778 would be a bullish signal.
  • Nikkei Futures +1.3%. 
  • CSI 300 -0.2%. 
  • HSI Futures +0.4%.

Fixed Income:

  • Yields were largely unbothered though marginally ticked lower.
  • US 10y yields -2bps. 
  • AUS 10y yields -2bps.

Commodities:

  • Brent Crude Futures +0.15% edged higher.
  • Gold Spot +0.15% found a bid.  



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