Asian Market Update

Daily Forex Fundamentals | Written by Trade The News | Sep 03 08 03:31 GMT |

Sharp declines in the Korean Won, lead Asian currencies lower

Economic Data: Australia's Q2 GDP came in less than expected, led by the slowdown in consumer spending (Q2 GDP QOQ: 0.3% V 0.4%E; YOY: 2.7% V 2.9%E). In other economic data, Australia's August AiG performance of service index hit an all time low (AUG AIG PERFORMANCE OF SERVICE INDEX: 39.3 V 42.8 PRIOR).

Forex: The AUD and NZD are weaker against both the USD and JPY on the weaker than expected Australian GDP data and the unwinding of commodities positions. The USD is firmer against the EUR, CHF, GBP and JPY. Gains in the dollar are tracking the rise in the 10 yr Treasury yield. In other currency pairs, EUR/JPY and GBP/JPY are both higher, tracking the gains in USD/JPY. The Asian currencies are sharply lower against the USD, led by losses in the Korean Won, which is lower by more than 1.5%.


Asian Equities: The Nikkei 225 is higher by more than 0.50% on short covering. Gains in Tokyo are being led by shares of exporters and banks. The S&P ASX 200 is marginally lower on declines in shares of resources companies. The Kospi is higher by more than 0.75%, after reversing the losses seen earlier during the session. Gains in South Korea are being led by shares of airlines and technology companies. Chinese equities are declining by more than 1%, while the Hang Seng is also off by more than 1%.

Commodities: Crude oil prices are lower by more than 0.20% and trading below $110.00/bbl on signs that damage from Hurricane Gustav may be less than expected. Additionally, crude is tracking the weakness in the EUR against the USD. Spot Gold is little changed, after falling by more than $24.00 during the US session. In other commodities related news, following the US close it was reported that US hedge fund Ospraie Management plans to close its flagship commodities fund, which had assets under management equal to $2.8B.

Trade The News Staff
Trade The News, Inc.

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