fxstreet.com 05 Feb, 2021 06:15 am

Asia trades generally higher after US gains; USD remains mostly firmer

Asia trades generally higher after US gains; USD remains mostly firmer
Asia Market Update: Asia trades generally higher after US gains; USD remains mostly firmer; US jobs data due later today; Biden expected to speak on s

0B in USD bonds due 2031, 2041, 2051, and 2061 -(CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 14-day reverse repos v CNY100B in 14-day reverse repos prior; Net CNY0B v Net CNY0B prior -(CN) China PBOC sets Yuan reference rate: 6.- Following the mostly positive open, Asian indices have remained generally higher; Nikkei 225 is closer to session highs, Hang Seng has pared gains; ASX 200 closed near session highs - Financials trade broadly higher after the recent rise in longer-term gov’t bond yields - SMIC declines over 6% in HK, Q4 gross margin dropped - Kuaishou Technology rises over 190% during first day of trading in HK - Mazda rises over 18% amid raised outlook - Japan companies expected to report earnings include Nippon Steel, Kobe Steel, NTT, Suzuki Motor, AGC, Mitsui Fudosan -(AU) Reserve Bank of Australia (RBA) Gov Lowe: Will consider extending TFF if conditions in economy worsen; Long Term bond yields lowered by ~30bps due to bond purchases; No sense of currency war or manipulation happening; Possible to do better than upside scenario, then we could increase interest rates; RBA has not ruled out additional bond purchases after current program; RBA has no appetite for bank or corporate bonds -*(AU) RESERVE BANK OF AUSTRALIA (RBA) STATEMENT ON MONETARY POLICY (SOMP): Raises trimmed mean inflation forecast for Dec 2021, cut Dec 2021 GDP growth forecast (as expected) -(AU) Australia Q4 Retail Sales Ex-Inflation Q/Q: 2.2%e - (TW) Taiwan Govt along with Taiwan Companies to help address shortage of Auto Chips - Press - (US) Pelosi, Hoyer and Committee Chairs to meet with President Biden on Friday at 9:45 AM EST - press - (US) President Biden to speak on Stimulus at 11:45EST on Friday (Feb 5th) - (US) Fed's George (Non-voter): Too soon to speculate on timing of adjusting bond purchases; Fed is far away from achieving objectives - (US) Treasury spokesperson: regulators believe the core market infrastructure is 'resilient' amid volatility in certain stocks in the last few weeks - Robinhood Markets: Says currently no temporary limits to increasing positions on stocks and options; there are no longer limits on GME and AMC - Nikkei 225, +1.9%e -(AU) Australia Dec Final Retail Sales M/M: -4.

3% prior; Cites food and drink prices for higher CPI - (SG) Singapore Dec Retail Sales M/M: -0.1% , Hang Seng +0.

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