BOJ made unplanned bond purchases ahead of rate decision

Asian Market Update: Stock markets decline; Caution before the Fed’s decision? ; The BOJ made unplanned bond purchases ahead of the rate decision.

General trend

– Will the BOK and the US Fed announce a currency swap agreement?

– Australian ex-dividends [Adbri, Atlas Arteria, Cleanaway, Cochlear, NRW Holdings].

– Australia has a public holiday on Thursday.

– RBNZ Hawkesby is due to speak on Thursday.

– The BOJ rate decision is expected on September 22 (Thursday).

Securities/economic data

Australia/New Zealand

ASX 200 open flat.

– (AU) Reserve Bank of Australia publishes its review of the bond-buying programme: does not rule out using the bond-buying program again in the future; Unconventional policy is reserved for extreme circumstances.

– (AU) Australia Aug Westpac Leading Index M/M: -0.1% vs. -0.2% before.

– (AU) Australia Treasurer Chalmers: RBA does not need additional government capital.

– (NZ) New Zealand Aug Credit card spending M/M: 5.1% vs. 1.8% prior; Y/Y: 29.4% vs. 5.1% before.

Japan

Nikkei 225 opened -0.9%.

– (JP) Yamasaki, former head of Japan FX: No wonder Japan intervened [in FX market] Last week; Rate verification means Japan can step in at any time.

– (JP) The Bank of Japan (BOJ) is offering to buy 5 to 10 year JGBs at a fixed rate of 25 basis points; Opens a window to buy unlimited 10-year JGBs at 0.25% [as expected].

– (JP) The Bank of Japan (BOJ) announces 250 billion yen in special bond purchase operations (unplanned).

Korea

Kospi opened -0.7%.

– (KR) South Korea says it is seeking currency exchange with the United States [in line] – Hurry.

– (KR) The Bank of Korea denies the currency swap agreement with the United States.

– (KR) Fresh speculation that BOK is discussing currency swap with US Fed – Press.

China/Hong Kong

Hang Seng opened -0.8%; Shanghai Composite opened -0.2%.

– (CN) Chinese state banks may lower lending rates as China left LPR rates unchanged in September – China Press.

– (CN) Asian Development Bank cut China’s 2022 GDP to 3.3% from 5.0% and forecast 2023 GDP to 4.3% from 5.2%.

– (CN) The Chinese PBOC sets the reference rate for the yuan: 6.9536 against 6.9468 previously.

– (CN) China PBOC Open Market Operation (OMO): sells CNY 2.0 billion in 7-day reverse repos against CNY 2.0 billion previously; Sell ​​CNY19B in 14-day reverse repos against CNY24B previously; CNY19B clean injection v CNY24B clean injection before.

North America

– (MX) Explosion reportedly heard near Pemex Tabasco facility – press.

Europe

– (UR) Senior US State Department official: The US has made clear the increased consequences if Russia tries to annex parts of Ukraine.

Levels starting at 1:20 a.m. ET

– Nikkei 225, -1.2%, ASX 200 -1.6%, Hang Seng -1.5%; Shanghai Compound -0.3%; Kospi -0.9%.

– S&P500 equity futures: +0.2%; Nasdaq100 +0.1%, Dax -0.1%; FTSE100 -0.1%.

– €0.9976-0.9957; JPY144.05-143.47; AU$0.6703-0.6665; NZ$0.5910-0.5884.

– Gold dish at $1,670/oz; Crude Oil +0.1% to $84.05/bl; Copper -0.2% to $3.4920/lb.

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