(Reuters) – Jamie McGeever
looking ahead to Asian markets on Thursday took a closer look at the fundamentals of Japan’s economy.
Revised Q2 GDP data and July trade and current account data will provide insight into JPY economic fundamentals and provide
economics Japan’s second-quarter GDP growth rate was revised up to 2.9% from 2.2%, and quarterly growth was revised up from 0.5% to 0.7%. They also expect the current account balance to return to surplus in July.
All things considered, Japanese officials seem to be quite relaxed about the yen falling to 30*)- yearly low to 144. per dollar. It’s down 20% so far this year, and 20% since the beginning of last year.
Very important for G3 currencies.
Many other Asian currencies are being hit by the US dollar boosted by the Fed. The Chinese yuan is near a two-year low of 7. Against USD, Thai baht near July year lows, Indian rupee hovers in July near all-time lows.
Broader market sentiment could be brighter on Thursday as U.S. bond yields retreated and oil prices fell 5% on Wednesday compared to most days following a strong rally on Wall Street.
On the corporate front, investors will be searching for full-year earnings from Hong Kong-based property developer Sun Hung Kai Properties as a gauge of the state of China’s bloated and crumbling property market.
Key developments Thursday that should give the market more direction:
Japan trade, current account (July)
Japan Gross Domestic Product (Q2)
Australia Trade (July)
Indonesia Consumer Confidence (August)
ECB policy decisions