Risk sentiment has been more muted in overnight trading, with most Asian stock market indices trading in the red amid weaker earnings releases and continuing worries over Japan’s Fukushima nuclear plant. The euro has been capped due to German Chancellor Merkel’s CDU party losing power in Baden-Wurttemberg for the first time in six decades. Continue reading →

Risk sentiment has been stable in Asian hours, with most regional stock market indices trading in the black. The improvement in sentiment was mostly a reaction to yesterday’s constructive performance of US equities, which advanced on the back of several better-than-expected earnings releases. Continue reading →

In the absence of any negative news, risk sentiment has been broadly stable in Asian hours. Better-than-expected New Zealand growth data, Japanese manufacturers starting to produce again, and constructive earnings releases in China have all contributed to the steadier tone. Continue reading →

Risk sentiment has been unstable in overnight trading as concerns over potential radiation leaks from Japan’s nuclear plant intensify and after further aftershocks struck the northern part of Japan early on Wednesday. The Nikkei 225 closed 1.65% lower. Continue reading →

Risk sentiment has been stable in Asian hours, mainly as a reaction to more stable conditions at Japan’s nuclear reactors and yesterday’s constructive performance in US stock markets. Prime Minister Kan said that the nuclear situation is getting better bit by bit and that a reconstruction plan must be prepared. Nevertheless more progress is needed before the situation can be evaluated as safe. Continue reading →

Risk sentiment has improved early Monday, mainly on signs of further progress at a crippled Japanese nuclear plant, with US Energy Secretary Steven Chu saying that the Obama administration believes the worst of Japan’s nuclear crisis is over. As a result US stock futures are trading 0.7% higher. EURUSD traded in a 1.4160-1.4181 range overnight and USDJPY traded 80.73-81.04. Continue reading →

In a surprise development, the Fed, the ECB, the Bank of England, and the Bank of Canada agreed to engage in “concerted intervention” with the Bank of Japan “on March 18, 2011″. Continue reading →

USDJPY recovered during the Asia session as liquidity conditions improved, but not before a new all-time low was reached at 76.36 (according to Bloomberg data). Japanese government officials also downplayed expectations that domestic insurers may be forced to repatriate assets to cover the cost of insurance payouts. EURUSD traded 1.3867-1.3968, USDJPY 76.36-80.28. Continue reading →

FX markets remained nervous during the Asia session although sentiment got a small boost after Japanese stocks rebounded. An FOMC statement which sounded a little more optimistic on the US economy also helped. USDJPY and USDCHF remain heavy however. EURUSD traded 1.3954-1.4013, USDJPY 80.69-81.17. Continue reading →

Markets turned severely risk-averse during the Asia session amid reports that another explosion at a malfunctioning nuclear power facility may have ruptured the reactor’s outer protective casing, allowing much larger quantities of radioactive material to escape. Continue reading →

USDJPY fell sharply to a low of 80.60 during the Asia session but soon reversed course after the BoJ announced Y12 trn worth of same-day liquidity operations. There was no FX reaction to the BoJ’s later decision to raise the ceiling on its asset purchase facility to Y10 trn from Y5 trn previously. EURUSD traded 1.3917-1.3985, USDJPY 80.60-82.45. Continue reading →