ForexLive Asia-Pacific FX news wrap: Carnage in equities

• US non-farm payrolls data – the key ranges for estimates to watch
• Japan Industry Minister Saito says economic fundamentals aren’t bad
• US equity index futures continue their slide, NQ has lost over 1% in evening trade
• More from Japan finance minister Suzuki: Need conviction Japan won’t go back to deflation
• Japan finance minister Suzuki closely watching stock prices, FX movements
• PBOC adviser calls for bolder stimulus, lower inflation target
• Japan chief cabinet secretary Hayashi says equity prices are determined in the market
• Australian June home loans value +1.3% m/m (expected +0.1%)
• Australian Q2 PPI +1.0% q/q (prior +0.9%) and +4.8% y/y (prior +4.3%)
• PBOC sets USD/ CNY reference rate for today at 7.1376 (vs. estimate at 7.2437)
• Brutal opening minutes in Japanese stocks, down 5%
• Bank of Korea shrugs off slight rise in inflation – says in line with earlier projection
• RBA expected to keep cash rate steady @ 4.35% in upcoming meeting despite easing inflation
• Oil heads up – US hurricane folks warn of huge storm gathering in Gulf
• Probability of a 25bp FOMC interest rate cut in September has fallen! (50bp on the move)
• South Korean July CPI rises more than expected, and more than in June
• ICYMI – the J.P. Morgan Global Manufacturing PMI fell to 49.7 in July from 50.8 in June
• Commerzbank hint at the potential for more Japanese intervention to support the yen
• UBS stick to their end of year S&P 500 forecast of 5,900; “fundamentals remain positive”
• Forexlive Americas FX news wrap: Fear spreads ahead of non-farm payrolls
• Other earnings released after the close; Doordash, Roku, Block, Snap
• Apple EPS $1.40 vs $1.34 expected. Rev $85.75 billion versus the $84.44 billion expected
• ICYMI – Filing shows Nancy Pelosi bought more $NVDA shares, sold some $MSFT
• Trade ideas thread – Friday, 2 August, insightful charts, technical analysis, ideas

Equity
markets were sold off heavily again following the lead from a weak
Wall Street on Thursday. Indeed, US equity index futures slid further
in Thursday evening Globex trade.

But
Japan, wow, Japan. The Nikkei and Topix indexes were down 5% within
only minutes of cash trade opening and they have barely recovered. We
have heard plenty of supportive comments from Japanese officials, finance
minister Suzuki, chief cabinet secretary Hayashi and
industry minister Saito amongst them. Details in the bullets above.

USD/JPY
hit lows circa 148.88 but surged just under a big figure as wild
moves persisted. As I post, USD/JPY is around 149.50. Other major FX was
relatively subdued (except against JPY of course).

Gold
has rallied back towards USD2455, while Bitcoin has been above USD65K
and back under 64K. Its around 64.4K as I post.

Data
flow was lower-tier only. News flow was light apart from the barrage
from Japanese officials.

A
People’s Bank of China adviser called for heftier stimulus efforts.

10 minute candles, Nikkei:

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