ASIA WRAP: China Draws Shortlist For Carrie Lam Replacement


*China to save face in HK's Carrie Lam replacement 
*Brexit defeat weighs marginally on Asia
*Russia and Turkey have come to an agreement on Syria



FX:

  • Last night's Brexit defeat led risk sentiment lower with markets awaiting the next move. Ranges were generally tightish with USD broadly bid.
  • AUDUSD -0.16%.
  • NZDUSD -0.09%.
  • GBPUSD -0.07% slashed 150pips from 1.3 highs after the failed program motion.
  • EURUSD -0.04%.
  • USDCAD +0.08%.
  • USDJPY -0.11% got down as far as 108.15.
  • USDZAR +0.32% was high beta in EM FX space.

Equities:

  • Asia equities saw slight losses on Brexit news.
  • ASX cash +0.01% finished flat with healthcare stocks sliding -1.15% offset by energy +0.58%.
  • Nikkei Futures +0.35%.
  • S&P 500 Futures -0.13%.
  • CSI 300 Futures -0.24%.

Fixed Income:

  • Yields ticked lower on softened risk sentiment. 
  • US 10y yields -1bps. 
  • AUS 10y yields -3bps. 

Commodities:

  • Brent Crude Futures -0.45% have pulled back from their test of US$60/bbl which was driven by potential OPEC supply cuts. 
  • Gold Futures +0.33% finished up as flows went away from risk assets.



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