Forex News Update: USD fell vs JPY, while EUR rose after Arabic language state channel Al-Alam said Iran's elite Revolutionary Guards tested Shahab 3 missile, which capable of reaching Israel. USD/JPY at 107.08 late, EUR/USD 1.5715, with CHF gaining, too; Iran report pushed up Treasurys, plus JGBs and gold, and helped oil add on 59 cents after NY fall. Ex-Fed governor Meyer said U.S. is unlikely to intervene in FX market even as a weak USD is major concern for policymakers. USD/Asians mostly lower; a fair few bourses, though, failed to recoup the ground lost previous day, and some turned negative.
Nikkei +0.2%, HSI +2.8%; Taiwan choppy, ending down 0.1% and well off early high. Aussie shares +1.5%. Kospi erased early rise, falling 0.9% amid spiking KRW. China shares strong with Shanghai +3.4%. Thai stocks +0.8% despite ongoing political tensions. Intervention spotted to sell USD/THB, plus several further rounds of heavy intervention in USD/KRW; that pair dropped briefly to 998.90 (under 1,000 for 1st time in more than two months), from 1,026 earlier. BOK, other officials kept up the rhetoric, too, to try and push KRW higher.
Japan May core machinery orders +10.4% from April, vs 0.8% rise tipped, with unadjusted core orders also +5.1% Y/Y; data regarded as leading indicator of corporate capital investment. Aussie Westpac/Melbourne Institute consumer sentiment index down 6.7% in July from June with index level of 79.0 not far above recession levels. Korea outstanding M2 money supply in May +15.8% Y/Y - largest gain in nearly 9 years - vs April's +14.9%, largely due to steep rise in bank lending to businesses, households; June total bank lending to large firms +KRW1.429 trillion vs May's KRW82 billion. Korea June PPI +10.5% Y/Y - largest yearly gain since March 1978 - vs 9.0% in May
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