T here were decent moves in financial markets to open the week here in Asia, with solid two-way traffic. Early moves in FX saw the USD mainly fall. EUR, AUD, NZD, GBP all gained against the dollar.

That better tone continuing from Friday’s US-time better tone was soon rejected though, as the focus turned to reports out of the IMF and BIS on Friday and over the weekend ringing alarm bells on the risks of recession. Into the Tokyo morning USD/JPY began a steady decline. EUR, AUD, NZD, GBP all fell away alongside, hence sharply lower yen crosses. Oil dropped, as did US equity index futures upon the week's trade opening on Globex.

As opening time in China approached the tone then improved! USD/JPY retraced some of its loss, as did AUD etc. against the USD. Oil recovered its earlier losses and, as I post, is net up on the session so far. News out of Ecuador indicates further supply issues ahead.

Chinese equities gained. The Hang Seng is up more than 2%. China was helped by another large injection of funds from the People's Bank of China in open market operations just prior to the local open.

On the data front it was a light day. China's industrial profits fell m/m in May, but not as much as they had fallen in April. They are still up YTD y/y.

From the Bank of Japan we had the 'summary' of the June meeting, not adding a real lot to what we already knew from this unchanged policy meeting. Board members did express concern about a sharply falling yen though.

Oil - weak early then higher:

oil 27 June 2022 chart