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Market Roundup

* The Indian rupee is expected to open slightly higher after Friday’s weak US job report, pushing the greenback lower. Stronger Asian currencies and lower crude oil prices also bode well for the local rupee. The onshore yuan gained after the PBOC set Monday’s reference rate for the currency at a stronger level than the previous session. The forward markets suggest spot USDINR opening around 83.42 and heading towards 83.35.

* On Friday, spot USDINR fell four paise to 83.43. Technically, the pair has been trading in a tight range from83.20 to 83.60 and is expected to stay forsome time.

* India’s short-duration bonds will likely lead a rally after the government said it will buy back 400 billion rupees of debt this week. The buyback would immediately release liquidity into the banking system, helping ease the tightness of late April.

* The yen fell against all Group-of-10 peers as investors took stock of Japan’s interest-rate outlook. USDJPY advanced as much as 0.5% to 153.75 amid thin trading due to holidaysin Japan.

* Asian equity markets are eyeing a strong open as China returns from a three-day holiday and Friday’s softer-than-expected US jobs report revived bets that the Federal Reserve will cut rates this year. Chinese stocks are returning from the Golden Week holidays with a strong tailwind behind them.

* Caixin Media and S&P Global released China’s April services purchasing managers’ index fell to 52.5 from 52.7 in March, a year ago 56.4, the sixteenth consecutive month of expansion.

* US Treasuries rallied after a softer-than-estimated payrolls number, that didn’t signal the labour market is rolling over, and a cooldown in wages appeased investors worrying about “stagflation” or a recession.

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