Global markets have regained some ground, with the Nikkei up 10.2%, US stocks rose 2%. The RBA holds hawkishly through the turmoil. New Zealand unemployment is set to jump in data due today. Japanese wages are on the rise, backing a hawkish BoJ.
In our bonus deep dive interview, ANZ Head of Australian Economics Adam Boyton surveys the hawkish tones in the RBA’s decision yesterday.
5 things to know:
Global markets regained some of their losses overnight, with the Nikkei 225 up 10% and S&P 500 up 2%. Meanwhile, the Reserve Bank of Australia held rates at 4.35%. ANZ Head of Australian Economics Adam Boyton says the RBA’s language and forecasts were, if anything, more hawkish than before.
The RBA made one dovish forecast tweak, with peak unemployment rate up to 4.4% from 4.3%. ANZ Senior Economist Catherine Birch says Australia’s labour market will ease more. ANZ-Indeed job ads are down 16.7% since January.
New Zealand’s Q2 jobs data today will indicate how much spare capacity is in its economy. ANZ New Zealand Chief Economist Sharon Zollner forecasts unemployment to rise from 4.3% to 4.7% and for employment to contract 0.2%.
Real wages rose 1.1% in Japan vs a year ago, stronger than forecasts for a fall of around 0.9%. That bolstered the Bank of Japan’s hiking stance, says ANZ Head of FX Research Mahjabeen Zaman.
Taiwan’s annual CPI inflation in July was at 2.52%, slightly above the consensus on 2.6% because of typhoon-related price hikes, says ANZ Economist Bansi Madhavani.
Cheers
Bernard
PS: Catch you tomorrow with reaction to New Zealand’s Q2 jobs figures.
