The Japanese yen weakens broadly today on broad based rally in Asian markets. Sentiments improved with rebound in China markets as well as news over Greece. Nikkei is trading up over 80 pts, or 0.4% at the time of writing and is heading back towards 20000 handle. China's Shanghai composite is up over 5% and reclaimed 3900 handle while Hong Kong HSI is up over 1.8%. Dollar also follows the yen lower while Euro is broadly higher. Markets seem to be optimistic that a deal could be reached by Greece and European creditors on a crisis summit on Sunday. We'd likely see some more upside in stocks and Euro for today.
Greece submitted a 13 page proposals to European institutions late yesterday to for a three year bailout loan. On Greece side, there will be n increase and simplification of the sales tax system for creating revenue of around 1% GDP. There was also a proposed reform of the pension system to start delivering the same amount of saving next year. It's reported that both measures meet creditors demand. The proposals will go through Greek Parliament today and will be reviewed by European finance ministers before Sunday's summit.
Released from Australia, home loans dropped -6.1% in May That's the largest drop since December 2009. In New South Wales, loan approvals dropped -5.9%, the highest since February 2012. Analysts noted that the decrease in loan is a result of lenders' response to regulatory actions. But the bigger drop for owner occupiers than investors was seen as a bad sign for the economy. From Japan, domestic CGPI dropped -2.4% yoy in June.
Looking ahead, UK trade balance is the main feature in European session. in US session, Canada employment data is the focus and is expected to show -4.5k contraction in June with unemployment rate rose to 6.9%. US will release whole sales inventories.