Oil and commodities fall in Asia on weak China macro.
Compounding matters today there was more weak China data again highlighting a slowing domestic economy. The PPI dropped the most in three years while industrial profits contracted to send commodity and oil prices lower, suggesting that investors fragility over oil demand worries will stay in focus into the weekend.
Pboc is not stepping up to the plate.
The problem, despite all this doom and gloomy foreshadowing of the worst, has yet to come, is the Pboc remains reluctant to ease rates and curbs on the property sector, a significant driver of economic expansion in China, as it doesn't want to overheat property markets.
Trade calming elixir
Still, the trade war calming elixir offered up by Beijing continues to resonate with investors suggesting the doomy backwards-looking data out of China is having less impact than usual. Asia market is closing the day mixed, and China is flat despite the miss on the Macro front.
Asia Currency markets
Not making much of a meal of these quarter-end flows in Asia today with a dollar Asia selling bias in TWD while USDCNH remained firm as everyone is cautious on both spot and a Forward Forward basis in the Yuan past Oct. 7 where it seems that there could be a significant risk building which keeps a floor under the USD/RMB.
Thailand
Thai equities nudged lower alongside Asian stocks amid political uncertainty in the US. SETi ended at 1,633 or -0.2% with below-average T/O of US$575mn. The Bhat was dead in the water all day.
Malaysia
The FTSE Russel decision did not exactly enamour Malaysian equities. While the U.S. political tumult also pressured the KLCI most of the day. The Ringgit had and up and down day doing little more than following the Yuan. The outlook looks relative stable next week with China heading for a long holiday. 4.18-4.20
U.S. political uncertainty
In the semantic quagmire known as Capital Hill, proceedings have turned decidedly mucky as the impeachment quagmire is quickly thickening suggesting that Washington's political swamp might not be able self drain this time around. This fuss has not only confused how the trade meeting will end up but has brought forward a significant amount of 2020 U.S. election risk premium.