Newscasts - Asia Markets Briefing: Yen and Yuan rise on lower Trump victory chances

SK

04/11/2024 09:02

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Source: 'Reuters - Business videos'

Description: The Japanese and Chinese currencies rose to two-week highs
against the dollar on Monday, after a poll over the weekend showed Democrat
Kamala Harris taking a surprise 3-point lead in the swing state of Iowa.
Growing confidence in a Trump win had seen the dollar index rally to a
three-month high in October.
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Video Transcript:

The Yen and the Yuan rise as the chance of a Trump victory falls. Welcome to
Asia Markets Briefing. I'm Thomas Warner. The Japanese and Chinese currencies
hit two-week highs against the Dollar on Monday. FX traders pointed to a poll
over the weekend that showed Democrat Kamala Harris taking a surprise
three-point lead in the swing state of Iowa. Growing confidence in a Trump win
had seen the Dollar index rally to a three-month high in October. With the
election due on Tuesday, it's likely to be a rocky few days in the currency
markets. One-week implied volatility for the offshore Yuan is at its highest
since 2015, when China cut the value of its currency after a stock market
rout. But the Indian Rupee fell to its weakest level on record on Monday. It's
been hit by persistent outflows from local stocks. The NIFTY 50 suffered its
biggest daily drop in four weeks on Monday, persistent selling by overseas
investors and a tepid earnings season means that the index is now down 9% from
September's record highs. The Culture Day national holiday in Japan and that
no trading happened on the Nikkei. Korean and Chinese markets all made gains
with BYD leading the gains in Hong Kong. Shares in the car maker surged after
it reported a 67% year-on-year increase in production and a 12% rise in Q3
profits. It's also hiring close to 200,000 new employees to help with
manufacturing. The bullish update gave a lift to the entire Chinese auto
sector. China's Commerce Minister Wang Wentao met with French Junior Trade
Minister Sophie Primas in Shanghai on Sunday. He urged Paris to take a
“active role in ending the escalating trade war between China and the
EU.” Primas on a three-day visit to challenge China over its import
duties on Brandy, which Paris calls “political and unjustified.”
Looking ahead to the rest of this week now, and the Standing Committee of
China's National People's Congress is meeting until Friday. It's expected to
approve spending and debt refinancing plans, which are aimed at boosting
growth and shoring up local government. And on Wednesday, the Bank of Japan
publishes the minutes from its September meeting. Former Bank of Japan Board
Member Takahide Kiuchi said on Friday that the country's current political
turmoil makes another rate hike unlikely until at least January, though he did
caution that any dramatic moves for the Yen could force the bank's hand when
it meets on December 18. And over in Korea, the country's oil refiners
reported sharp Q3 losses on Monday. SK Innovation, parent of South Korea's
largest refiner SK Energy, said that its refining business lost $450 million
in the third quarter, the worst performance since Q4 of 2022. Oil prices fell
throughout the quarter, but have risen since, and Brent and WTI were both
trading higher on Monday after OPEC+ confirmed a second delay to its planned
December output hike. The move reveals the depth of concern about weak demand,
particularly from Asia. The regions crude imports were down by 200,000 barrels
per day in the first 10 months of this year, according to LSEG data. And
that's it from your Asia Markets Briefing