- Still to come from the BOJ today - Bank of Japan Governor Kuroda speaks at 0630 GMT
- North Korea has fired a ballistic missile towards its East Sea
- USD/JPY is a touch lower after the BOJ statement - minor crack in BOJ resolve?
- BOJ announces it leaves monetary policy unchanged
- Honda says it will cut output at two Japanese factories, by 20% and 40%
- Finance authority ask institutional investors to refrain from market-destabilizing trading
- Forecasts for the BOJ meeting today & the yen
- Contrarian view - “China has no choice" but to abandon COVID ZERO policy
- IMF cuts is 2022 China economic growth forecast to 3.2% (from 4.4%)
- PBOC sets USD/ CNY reference rate for today at 7.1698 (vs. estimate at 7.1638)
- Australia PPI for Q3 2022 +1.9% q/q (prior +1.4%)
- The Reserve Bank of Australia is expected to hike cash rate by 25bp next week
- All 3 Japan inflation indicators rose in October, higher than expected. JPY little changed
- Japan data - Tokyo area headline inflation 3.5% (expected 3.1%)
- Japan jobs data - September jobless rate 2.6% (expected 2.5%)
- Japan's PM Kishida says economic stimulus will total 71.6trln JPY
- White House promises further military assistance to Ukraine
- South Korea finance minister says October inflation will likely be slower than predicted
- Apple head Tim Cook says there is clearly wage inflation, in logistics also
- AAPL say the rising USD will smash into revenue (Dec Q revenue to drop under Sep Q)
- ICYMI: Russia warns West: We can target your commercial satellites
- New Zealand consumer confidence for October unchanged at 85.4 (prior 85.4)
- Biden administration is weighing further controls on Chinese technology
- Heads up for Apple Q4 financial results conference call due at 5pm NY time (2100 GMT)
- AAPL EPS beats at 1.29 vs. 1.27 expected, Revenue US$90.15bn beats expected 88.90bn
- Trade ideas thread - Friday, 28 October 2022
- US stocks sink at the close and sink even further afterwards on earnings
- Amazon shares utterly crushed after reporting earnings
- Forexlive Americas FX news wrap: ECB raises rates by 75 basis points
The financial results from AMZN after the US regular hours close saw the shares trashed on a disappointing outlook. AAPL shares were hit soon after despite beats on revenue and EPS.
The data focus for the session was on Japan inflation. The Tokyo area CPI for October came in higher than expected on all three indicators. The Bank of Japan have said in the past, consistently, that they view rising inflation as transitory and thus the higher inflation rates showing are not a reason to remove any policy accommodation (but ... see the next few lines referring to inflation comments in the Bank's Statement today). During the session here ahead of the announcement, Japan's PM Kishida announced an additional budget for economic stimulus. USD/JPY gained a little ground in the hours following the data, rising to highs just under 146.75.
The statement showing no change to the major policy planks was very much as expected from the BOJ. However, there did seem to be a minor concession in the statement, the Bank referring to rising inflation expectations, which is expected to lead to a sustained rise in inflation accompanied by wage gains. As far as ‘pivots’ go its weak, but it is way more than we have heard from the Bank in many years. It sets up more interest in the meetings ahead. See the points above on the BOJ Statement for more on this.
USD/JPY dipped a little after the statement but as I post USD/JPY is little changed from before the statement at around 146.45.
Speaking of inflation, we had higher Australian PPI data released today. This follows the higher-than-expected consumer inflation data earlier this week. The Reserve Bank of Australia meet next week, November 1. A +25bp rate hike is the consensus expectation.
The People’s Bank of China set its USD/CNY reference rate at its weakest for the onshore yuan since the middle of February 2008.
Oil fell on the session. Iron ore in Singapore fell to its lowest since May of 2020. Concerns over softening demand cited.
Chinese stocks were back under some pressure today:
