Asia Day Ahead-Risk aversion, JPY gains and Ueda speech lead
Nov 18 (Reuters) -Monday's speech by Bank of Japan Governor Kazuo Ueda is in focus after broad gains for the yen on Friday, amid risk aversion triggered by concerns about slower interest-rate cuts by the U.S. Federal Reserve, and potential for escalation in the Russia-Ukraine conflict.
Strong U.S. economic and inflation data and comments from Fed officials resulted in investors downgrading their expectations for a rate reduction at the central bank's December meeting.
Wall Street fell, Treasury yields edged higher, the U.S. dollar lost ground but notched its biggest weekly gain in over a month and commodities dropped.
Asia's light data calendar will allow traders to focus on BOJ chief Ueda's speech at 0100GMT and his news conference at 0445-0515GMT at which he may offer hints on the timing of the next rate hike.
Dow -0.7%, S&P -1.32%, Nasdaq -2.24% as investors reacted to cabinet picks by U.S. President-elect Donald Trump. Treasury yields posted modest gains, supported by the rate outlook; 2-year +1 bp to 4.3070%, 10-year +2 bps to 4.4450%, and 30-year +4 bps to 4.6230%.
Oil fell on weaker Chinese demand, Brent -2.1%, WTI -2.45%. Gold was down 0.1%, suffering its biggest weekly fall in three years on rate fears. Copper erased early gains to close 0.55% lower.
The USD slipped as the Trump trade paused =USD -0.2%. The JPY gained 1.2%, rising against all the major currencies. EUR +0.1%, USD/CNH -0.1%, AUD +0.15%, NZD +0.35% but GBP -0.4% and USD/CAD +0.25%.
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Asia data: https://tmsnrt.rs/48X5LXd
Trump trades: https://reut.rs/3Z6NmnK
Krishna Kumar is a Reuters market analyst. The views expressed are his own. Editing by Ewen Chew
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