Forex News.USD stronger vs JPY, EUR in Asian trade today as expectations of more ECB hikes from continued to recede, also as higher share prices in Asia fuel risk appetite. USD/JPY up last at 107.27, above 107 for 1st time since June 27, EUR/USD down at 1.5644, EUR/JPY pretty flat at 167.84, GBP/USD down at 1.9757, weakening with RBC citing reports in weekend press that Bradford & Bingley is set to issue more profit warnings, while Alliance and Leicester planning large dividend cut to shore up its finances. Asian stock markets broadly higher, Nikkei +0.9%, HSI +1.5%, helped by Shanghai composite's 3.6% rise on 1H earnings hopes. STI +1.0%, Sensex +2.4%. BOJ leaves core assessment of Japan regional economies unchanged, even though 8 of 9 regions cut view; quarterly report says high energy, material costs slowing economy, but overall forecast remains valid; also cuts view on private consumption.
BOJ governor Shirakawa says Japan economy slowing on high energy prices, with bad trade conditions cutting into corporate profits; also warns that inflationary risks rising around the globe, but says economy should eventually return to moderate growth; no surprise in comments, markets don't react. Bank of Korea, finance ministry says will jointly work to stabilize USD/KRW; comments drive pair sharply lower, last at 1,042.7. Korea President Lee dismisses vice finance minister Choi Joong-kyung; finance minister Kang Man-soo staying, so markets unlikely to react significantly; amid public anger over contentious U.S. beef deal designed to get FTA with Washington, Lee also sacks agriculture minister, welfare minister, education minister. Number of Aussie job ads fell 3.0% in June from May, according to ANZ Bank survey; result in line with broader trends pointing to economic weakness. Spot gold drops through support at $925/oz in line with further EUR/USD weakness, at $923.95/oz, down $7.30 vs London PM fix. August light sweet crude at $143.72/bbl, down $1.57.
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