CNH: USD/CNY Fixing Remains Above 7.1700 Despite USD Weakness

The USD/CNY fix printed at 7.1883, versus the BBG market consensus of 7.3300. 

• This keeps the fixing outcome close to unchanged, while the error term widened slightly to -1417pip,s but remains within recent ranges.
• USD/CNH is little changed in the first part of Wednesday dealings, last near 7.3450. 

• CHINA SETS YUAN CENTRAL PARITY AT 7.1883 WEDS VS 7.1878

Asian equities on opening higher today, with the MSCI Asia Pacific Index gaining 0.4%, driven by tech and shipbuilding stocks in South Korea and materials shares in Australia. The CSI 300 Index is expected to extend its rebound, supported by stronger-than-expected Chinese M1 money growth and the continuation of a "moderately loose" monetary policy. US-listed Chinese shares gained over 2%, aided by positive tariff policy developments. 

• Japanese equities are higher today after four consecutive sessions of losses, supported by a weaker yen benefiting export-focused sectors like automakers and machinery firms. The Topix is 0.6% higher while the Nikkei trades just 0.15% higher. Keyence led gains on the Topix, rising 4.4%, with banks and insurers also advancing. Semiconductor-related stocks saw renewed buying after recent sell-offs tied to concerns over rising interest rates and regulatory issues.
• Later today Bank Indonesia is expected to maintain its key interest rate at 6% amid ongoing efforts to stabilize the rupiah. Rate cuts, initially expected earlier, are now likely delayed until the second half of 2025.
• Eurozone Industrial production data is due out later today before focus turns to the US inflation report, adding another layer of focus on global growth and central bank policies.