Tuesday 22nd June 2021: Japanese markets recover losses from last 4 sessions

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Global Markets:

  • Asian Stock Markets : Nikkei up 3.04%, Shanghai Composite up 0.78%, Hang Seng down 0.08%, ASX up 1.66%
  • Commodities : Gold at $1787.25 (+0.24%), Silver at $26.00 (-0.11%), Brent Oil at $75.09 (+0.25%), WTI Oil at $73.16 (+0.05%)
  • Rates : US 10-year yield at 1.492, UK 10-year yield at 0.765, Germany 10-year yield at -0.174

News & Data:

  • (JPY) BOJ Core CPI y/y 0.00% vs 0.00% expected
  • (NZD) Credit Card Spending y/y 27.20% vs 87.50% previous
  • (NZD) Westpac Consumer Sentiment 107.1 vs 105.2 previous
  • Fed’s Williams: We have taken note of the significant increase in reverse repo usage

Markets Update:

Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, with higher crude oil prices and bargain hunting also providing the boost. The recent sell-off came amid concerns about the US Fed’s outlook for interest rates. Meanwhile, the coronavirus infection rate in the region is capping the gains and is keeping the underlying mood cautious.

The Japanese stock market is sharply higher on Tuesday, recouping most of the losses of the previous four sessions, with the benchmark Nikkei index adding more than 800 points to move above the 28,800 level. Australian stocks across most sectors are ahead with a weak U.S. dollar and bargain hunting providing a boost. Mainland Chinese stocks edged higher as the Shanghai composite gained about 0.8% while the Shenzhen component rose 0.2%. Hong Kong’s Hang Seng index was flat.

In currency markets, the dollar paused for breath after gaining sharply in the wake of the Fed’s policy surprise. U.S. crude held largely steady at $74.98 per barrel and Brent eased to $73.6, after they rose on Monday on a pause in talks to end U.S. sanctions on Iranian crude. Market sentiment also strong on hopes for a quick recovery in oil demand in the U.S. and European markets

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