© Stocksak. After his speech, the Chinese President Xi Jinping waved to the media after the 20th National Congress of the Communist Party of China was over. This was at the Great Hall of the People in Beijing on October 23, 2022. RE
By Jamie McGeever
(Stocksak – A look ahead at Asian markets from Jamie McGeever
Chinese politics, Japanese policies
Both the Asian trading floors and global economic developments over the past 48 hours have been the subject of much discussion. The former could have longer-term economic implications, while the latter could spark more immediate market fireworks.
China’s Xi Jinping, the most powerful ruler of China since Mao Zedong, has won a historic third term as China’s leader in Beijing. His grip on both the Communist Party and the country appears to be iron.
This was made available to the public on Saturday, when Hu Jintao, former president of the Party Congress was unexpectedly escorted away from the closing ceremony. Video footage showed Hu, sitting next to Xi looking confused and distressed.
Sources suggest that Xi’s cabinet reshuffle could also see Yi Gang, the central bank chief, stepping down to be replaced by Yin Yong (ex-deputy governor), in addition to Yi Gang. One source says, “The pro-reform group is almost out.”
Japan intervened in FX markets on Friday, after the yen plunged to a 32-year low near 152.00 per USD. No matter how many dollars Tokyo sold it, the greenback lost more than 7 yen to a low of 144.50 before reaching 147.50 at the end of the day.
It remains to be seen if this changes the yen-selling tide or if the FX market reloads. Traders will still feel that there is still some juice in the short dollar/long yen trade as long as the U.S.-Japanese monetary policies chasm remains in place, despite the possibility of Japanese intervention.
Although the intervention was a “success”, today’s dollar is around 147.50yen. This is more than it was on Sept. 22, when Tokyo intervened and sold nearly $20 billion. The dollar was then just below 147.00yen.
History shows that this is not yet over.
Key developments that could give more direction to the markets Monday:
Australia PMIs October
Japan PMIs (October).
U.S., European PMIs – October