ForexLive Asia-Pacific FX news wrap: BOJ unscheduled bond buying boosts yen crosses

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Yields
on Japanese Government Bonds rose, prompting the Bank
of Japan to
announce
an unscheduled bond-buying operation during
the session. The yen weakened on the session and weakened further on
this news. USD/JPY is above 14.70 as I update after another strong
upmove.
</p><p>The
Bank of Japan move was not the only impactful development during the
day. Early news was that China is set to announce further
stimulus measures, at a 3pm (Beijing time) news conference. This is
7am GMT and 3am US Eastern time. See bullets above for more on this.
As I post there has been news of a Chinese State Council document
outlining measures including:</p><ul><li>Expand
consumption in NEVs</li><li>No
more car purchasing restrictions policies</li><li>Support
rigid housing demand</li><li>Support
residential districts renewing</li><li>Stimulate
smart home appliances and electronics</li></ul><p>Once
again this is underwhelming stuff.
</p><p>From
Australia today we had softening credit date. The headline gain of
+0.2% m/m and 5.5% y/y for total
private credit in June is
the
slowest pace of annual growth in 20 months.
</p><p>The
data focus, however, was on Chinese official PMIs for June (these are
the PMIs from the National Bureau of Statistics (NBS)). The
manufacturing PMI improved a touch from June but remained in
contraction for its fourth consecutive month. The non-manufacturing
PMI dipped but remained in expansion.
</p><p>Asian
equity markets:</p><ul><li><p>
Japan’s
Nikkei 225 +1.5%</p></li><li><p>
China’s
Shanghai Composite +0.5%</p></li><li><p>
Hong
Kong’s Hang Seng +1.5%</p></li><li><p>
South
Korea’s KOSPI +0.9%</p></li><li><p>
Australia’s
S&amp;P/ASX 200 +0.1%
</p></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.