Morning Wrap (19.01.2024)

7:30 AM 19 January 2024
  • Asia-Pacific indexes, except for Chinese indexes, are trading in a positive sentiment after US indexes closed with solid gains yesterday. The Kospi and Nikkei are gaining around 1.20-1.50%.

  • Chinese indexes are again among the weakest assets, despite an improvement in global sentiment. HSCEI and HSI are losing between 1.10 and 1.50%.

  • Despite yesterday's rebound on Wall Street, the US dollar did not lose value and is one of the stronger G10 currencies today, along with the euro. USDJPY is gaining 0.40% to 148,700, approaching the psychological level of 150,000.

  • The Japanese yen is one of the weaker currencies today after a very low CPI reading for December. Japan's core CPI in December showed the slowest year-on-year growth since June 2022.

  • Japan's December CPI report showed a price increase of 2.6% (forecast 2.5%, previously 2.8%). Core inflation for consumer prices was 2.3% year-on-year.

  • The inflation report in Japan gives the Bank of Japan another reason to wait longer before ending its negative interest rate policy, while also delaying any potential interest rate hikes in the coming months.

  • North Korea conducted a test of its underwater nuclear weapons system in protest against joint military exercises by South Korea, the United States, and Japan, state media KCNA reported on Friday.

  • The test of the "Haeil-5-23" system, which North Korea called its underwater drones capable of nuclear attack, was conducted by a defense ministry think tank in waters off its east coast.

  • China called on relevant parties to restore and ensure the safety of maritime flow in the Red Sea to jointly maintain the smooth functioning of global supply chains and the normal order of international trade, the Ministry of Commerce reported on Thursday.

  • In the cryptocurrency market, we observe a slowdown in declines, but the selling pressure is strong enough to prevent a rebound. Bitcoin is trading around $41,200, Ethereum $2,460.

USDIDX index has not lost value despite yesterday's rise in the stock market. What's more, today the USD continues to rise. Source: xStation 5

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