China’s Shanghai Composite led the winners, jumping 1.4% after the PBOC said the foreign exchange required reserve ratio for financial institutions will be cut by 200 basis points to 6.00%, effective September 15. That move is aimed at supporting the yuan, although the PBOC on Tuesday set the yuan’s midpoint at a 2-yr low of 6.9096.
Chinese city Guiyang, the capital of the Guizhou province, is also in a Covid-related lockdown now.
The Reserve Bank of Australia raised its cash target rate by 50 basis points to 2.35%, as expected, and said more rate hikes are likely but won’t be on a pre-set path.
Japan’s July household spending was weaker than expected, declining 1.4% month-over-month after increasing 1.5% in June. USD/JPY at 141.78, which is a new 24-year low.
Japan’s July Household Spending -1.4% month-over-month (expected -0.6%; last +1.5%) and +3.4% year-over-year (expected +4.2%; last +3.5%)
Australia’s Q2 Current Account AUD 18.3 bln (expected AUD 20.8 bln; last AUD 2.8 bln)