ForexLive Asia-Pacific FX news wrap: Rebound Day. For now anyway.

• Japan chief cabinet secretary Hayashi says wage rises will spread in Japan
• Bank of Japan Governor Ueda to attend parliament for hearing on stock market volatility
• Australian job ads fall in July, the sixth straight m/m drop
• Reminder – 4 huge events coming from the RBA: Policy decision, Bullock, Statement, Hunter
• Japan finance minister Suzuki – Seeing bright aspects in Japan’s economy
• PBOC sets USD/ CNY central rate at 7.1318 (vs. estimate at 7.1454)
• Fed’s Dalys says labor market is slowing but not falling off a cliff
• Korea Exchange halts trade now – circuit breaker
• Japan stocks – Nikkei circuit breaker triggered already!
• MUFG wary of a falling GBP, citing excessive long positioning
• South Korean finance minister says will stabilize mkt if excess volatility
• Japan wages data June 2024: Real wages +1.1% y/y for the first rise in 27 months
• Japan data – Household spending for June -1.4% y/y (expected -0.9%)
• BRC UK Retail Sales data for July is a very mixed result
• Analyst calls for verbal intervention from the Federal Reserve
• Morgan Stanley says markets are likely to remain vulnerable until we see 2 things
• More from Fed’s Daly – monitoring labour market indicators carefully
• BNZ can’t rule out an August Reserve Bank of New Zealand interest rate cut
• UK Chancellor Reeves says wants to strengthen and deepen trade ties with the US
• Fed’s Daly says minds are open to cutting rates in coming meetings
• The 3 events driving the ‘stampede’ in markets and the buying opportunities created
• Oil – Goldman Sachs base case is a US$75 floor for Brent crude, but see downside risk
• Forexlive Americas FX news wrap: Risk assets crushed early but steady late
• Broad sell off across the board. Every Dow component lower. Every S&P sector lower.
• Bank of Japan deputy governor Uchida Shinichi to speak Tuesday (US time), August 6, 2024
• Trade ideas thread – Tuesday, 6 August, insightful charts, technical analysis, ideas

After
Monday’s collapse in Japan’s Nikkei today was a case study in
‘Turnaround Tuesday’. The Nikkei 225 surged as soon as the cash
market opened, so much so that a circuit breaker trading halt was
called in futures after the rapid opening jump higher. The Nikkei
continued to rise. The yen slipped lower, with USD/JPY rising to
around 146.50 before dropping back.

Some
of the credit for the stabilisation of markets can probably go to
Federal Reserve Bank of San Francisco President Mary Daly. Daly spoke
in measured terms, saying rate cuts lie ahead in coming meetings,
that the labour market is slowing but “not falling off a cliff”,
that policy needs to be pro-active, and other soothing remarks.

From
Japan today were data showing workers’
real wages rose for the first time in more than two years. This
is a precursor (but not a guarantee) to a
recovery in consumption and the emergence of a positive growth cycle
long sought after
by
Bank of Japan
and other officials.

Still
to come is the Reserve Bank of Australia policy decision and
accompanying statement, the quarterly Statement on Monetary Policy
(SoMP) and Reserve Bank of Australia Governor Bullock’s press
conference. A ‘hawkish hold’ is expected from the Bank.

This article was written by Eamonn Sheridan at www.forexlive.com.