18 Jul 2014
Asia Recap: Markets spooked by Malaysian plane story
FXStreet (Bali) - Asian traders were mostly sidelined following the tragic news of a Malaysian commercial airline being shot down in a pro-Russian rebels-held area in the East part of Ukraine, late on Thursday night in Europe.
To make matters worse, Israel PM confirmed that a ground military operation has been launched to Gaza, another geopolitical issue that financial markets will have to deal with, on top of the potential far-reaching diplomatic ramifications that any involvement of Russia on the Malaysian plane crash disaster may have.
The calendar was virtually empty in Asia, with the only 2 events to highlight being the BoJ minutes, where no new clues were provided on further/exit of QE practices, and also the Chinese home prices index, which fell the most this year, after a +4.2% y/y vs +5.6% in May.
After early pressure, both the AUD and NZD managed to recoup most losses incurred in the transition NY-Tokyo, and are now approaching the European session around the closing levels in NY. Meanwhile, the Japanese Yen found willing sellers, despite the sense of high risk aversion seen overnight, giving back almost half Thursday's gains against the USD, with current level circa 101.40 after an early test of 101.00 bids.
Main headlines in Asia
Ukraine points to Russian involvement over Malaysian airline plane crash
Israel begins land invasion against Gaza
A true risk aversion wave hits global markets
Big outflow in US high-yield market
Putin blames Ukraine for Malaysian plane crash
Malaysian plane crash: List of passenger deaths by nationalities
All roads lead to a Russian involvement in Malaysian plane tragedy
Malaysian story enough for sharp risk off moves? - Westpac
BoJ minutes: QE to continue until price stability target of 2%
China's Li: GDP slightly higher or lower than 7.5% acceptable
China House Price Index down to 4.2% in June from previous 5.6%
Yen selling by Mrs. Watanabe remains strong - Nomura
Malaysian plane crash: US Secretary of State calls for credible international investigation
To make matters worse, Israel PM confirmed that a ground military operation has been launched to Gaza, another geopolitical issue that financial markets will have to deal with, on top of the potential far-reaching diplomatic ramifications that any involvement of Russia on the Malaysian plane crash disaster may have.
The calendar was virtually empty in Asia, with the only 2 events to highlight being the BoJ minutes, where no new clues were provided on further/exit of QE practices, and also the Chinese home prices index, which fell the most this year, after a +4.2% y/y vs +5.6% in May.
After early pressure, both the AUD and NZD managed to recoup most losses incurred in the transition NY-Tokyo, and are now approaching the European session around the closing levels in NY. Meanwhile, the Japanese Yen found willing sellers, despite the sense of high risk aversion seen overnight, giving back almost half Thursday's gains against the USD, with current level circa 101.40 after an early test of 101.00 bids.
Main headlines in Asia
Ukraine points to Russian involvement over Malaysian airline plane crash
Israel begins land invasion against Gaza
A true risk aversion wave hits global markets
Big outflow in US high-yield market
Putin blames Ukraine for Malaysian plane crash
Malaysian plane crash: List of passenger deaths by nationalities
All roads lead to a Russian involvement in Malaysian plane tragedy
Malaysian story enough for sharp risk off moves? - Westpac
BoJ minutes: QE to continue until price stability target of 2%
China's Li: GDP slightly higher or lower than 7.5% acceptable
China House Price Index down to 4.2% in June from previous 5.6%
Yen selling by Mrs. Watanabe remains strong - Nomura
Malaysian plane crash: US Secretary of State calls for credible international investigation