Investors in Japanese assets, meanwhile, are on high FX intervention alert after the yen fell on Friday for a seventh straight day towards 160.00 per dollar, the level that triggered the first of Tokyo’s yen-buying forays into the market nearly two months ago.
With the Bank of Japan‘s next policy meeting not until July 30-31, it may require verbal or direct intervention again to halt the yen’s slide. The BOJ’s summary of opinions from its June 13-14 policy meeting, to be released on Monday, will be closely watched.
The regional calendar on Monday also includes the latest trade figures from New Zealand, inflation from Singapore, and unemployment and industrial production from Taiwan.
Asian stocks go into the last week of June in decent shape, supported by subdued volatility and falling inflation globally, lower U.S. bond yields, and buoyant equities worldwide.
With the end of the first half in sight, however, some investors will want to lock in profits and square positions. The slide in Nvidia shares last week – their first weekly decline in nine – could be a sign of how this week will play out.
Japanese stocks are up around 15% year to date, and the MSCI Asia ex-Japan, India’s Sensex and South Korea’s Kospi are all up around 7%.
The outlier is China.
