we are hearing from the pboc governor who saying that the pboc is studying for the in portland governmentd trade. don't call quantitative easing, it's definitely not there. we had retailing on the retelling front. the 618 festival has been wrapping up. that was a bit underwhelming, so the chinese consumer is still a little bit weak. let's check in on how markets in japan are doing, avril hong takes a closer look. avril: we see japan from the lunch break, the chip ai related names that surged in nvidia, it topped them market cap of microsoft and apple and its lifting the ai complex. among those that are well and in the green, also another stock we are keeping an eye on in japan, mitsubishi motors, it surging after the nikkei reported is looking for ways to further unlock shareholder values through share buybacks are raising dividends. a lot of greens and japanese equities and this is despite a recovery on the dollar on the yen against the dollar. markets are digesting what we got from the boj april meeting minutes. there was one particularly hawkish, coming through from a board member that

the pboc to cut interest rates? we have always been the view that it is the currency stability that the pboc is really focused on that is holding back its rate cuts. i think the governor's meeting remarks made that quite clear. yes, indeed, this will create tensions in the economy. the economy is still very weak. policy support is needed. fiscal is doing something. there has been some property market support, but monetary easing would further help. but at this point, because the focus on the exchange rating means that the monetary policy is really tied up with the federal reserve's rate cut trajectory. at this point, the u.s. team is expecting to cut. in that case, we see further moves by the pboc, potentially cutting 20 basis points, but obviously, that link with the fed move is not especially helpful. paul: you mentioned currency stability be in front of mind for policymakers. to what degree is the level of debt and stress debt and the unwillingness to see some areas become more indented holding back on that idea

the next fed move would be making the pboc cut rates. we are also pushing back our extradition for the pboc cut. it probably also means the overall cut would be fewer than we had expected earlier. >> when it comes to the property sector in particular and the fact that we continue to see weakness, this is a sector that has seen structural decline. can the government really do anything? is this an issue of broader consumer sentiment? >> it is probably still early. to see the impact from the stimulus. overall i think this is improvement on the broadside. we are trying to purge them on the market. the overall scale is too small. we're not sure if the pace will pick up soon. at this stage we did not see that. the scheme has had significant impact. to become the pace or pick, only when that happens we are going to expand some more on the market. >> do you expect us to be sustainable? >> i don't think so. probably even if we see a pickup in may, i think overall growth rate is still kind of low if you compare with the for the pandemic, the norma

boj, pboc, and a lot of the central banks are trying to smooth out volatility. they are not trying to turn things around at this moment as far as currency markers are concerned, so i think this is the general theme for the asian markets. it's going to be tough. paul: thanks very much for your views today. still to come this hour, a deep dive into opportunities in private credit markets in india and south asia, including the esg space with a capital. this is bloomberg. ♪ paul: let's take a look at how stocks in hong kong and china are faring this friday morning in china. well, not too well is the answer. hang seng had been having a reasonable week up until now. right now, off by 7%. that is weighing on all the equity indexes. we had the csi 300 on a five-week losing streak. policymakers did moved to prop up the market today. a lot of read on that screen. a vstoxx suffering as well on the news that canada might impose tariffs in line with the u.s. and eu. let's get a little more on that story, canada preparing potential tariffs on chinese electric vehicles, and th

the pboc, the china central been standing pat. this is from the powers that be in beijing. >> think that what he it tells us about the rates picture in china is that the pboc is still worried about too much downward pressure on the yuan on the currency and what that may mean for the economy and that it is really some of those ethics concerns trumping domestic concerns at this point in time. now about 10 months straight. this stupendous rate. i think likely officials are looking at what is happening elsewhere in the world. the ecb rate cut wasn't enough to really trigger something from the pboc. what exactly the timeline -- they normally have something that is in the cards yet. maybe this later we will have to see. that is what is pulling her attention to other forms of support by the property package that was revealed last month. i think some of the skepticism around that remains about what additional things may boost that and help the property sector. >> the policy sponsor of beijing and china constrain them by the feds continued

fallen into a more than two decade low perhaps raising the risk that we see some push out from the pboc elsewhere it is a tech lead rebound tracking the performance of nvidia but as i say it is really about and elation, waiting for the pce numbers later in the week but in the meantime we did get some numbers out of australia cpi hotter than expected so selling and stock markets the bonds also coming under real pressure that with the odyssey dollar gaining ground let's look bored and dig a bit deeper and what we see down under because it was a third straight month where we saw a climb that was more than forecast so it raises concerns that rates there are just not restrictive enough so we heard from the rba governor just last week talking about how the rate hike is not off the table and we see after the cpi print swap strangers raising the bets that there is a chance of a rate hike , august. this is coming at a time when other central bankers and michelle ballmer sounding also quite hawkish and saying there is a willingness to raise rates if needed. have a listen. >> we are still not yet

we have the pboc coming through with weaker than expected data. it might be taking the opportunity to set things weaker on the chinese currency. let's flip the board and look at the stocks that are in particular focus today. toyota is one that's a big boost on the asia stock gauge, which is gaining for the first time in four sessions, but these are the names that are coming under pressure. infotech is the big decline or today. tom: we will get more on the tech space. thank you for joining us with a check on the asian markets. staying on the tech space with a lens on what's been happening with nvidia entering correction territory, with the selloff wiping out about $430 billion from the chipmaker's market cap. let's bring in annabelle in hong kong. what was behind this drop, then? annabelle: yeah. it is something that a lot of investors and analysts are looking at and there's quite a few different reasons that are being suggested. a lot of them point to the technicals. some of our colleagues have been looking at the impact of triple witching, the ro

do you think the pressure is on the pboc to some degree to deliver more concrete funding support?r sure. our senses they would get to around 5% target this year given the stronger q1 print, but to your point, i think for sure they would need more forceful policy response for restoring confidence. i think that would involve more borrowing, transferring more to corporations to spend. it would also mean some of the monetization effects have negotiation support increased to the property sector. i think what they have earmarked is not enough. our estimate is that at least you need three renminbi if not more. we could see more policy measures, which i just mentioned, which i think is critical for confidence in addition to corporate earnings coming through. paul: i want to get your views on the china versus india story, which of those markets would you be more heavily allocated towards? >> we do like india as a structural play. the main concern from investors in the last week or so has been around the fact that it does impact the growth story in terms of having a reduced majority. our ow

the pboc had his turn to share reviews. he is saying chinese monetary policy is supportive., we have seen a lot of investors testing that resolve of the pboc government, but they are saying monetary policy will be offering financial support or some sort of support for the economic recovery as well. we have seen some weaker signals coming out, particularly around consumption in china, but the movers around the hang seng really being dominated around the tech space. you have the likes of byd, for instance,

in the onshore yen worth noting as well given the story of the dollar resilience we are seeing the pboc coming through today as well with a fix above 712 the highest level since november so worth keeping in mind as we take a look flip the board at some of the other asian currencies as i say it is a story of dollar resilience on this week it is not just about pc numbers so forget it is also with concerns about political risk in europe, especially france, and we are not seeing that much of move on the peso but do not forget they are not far from the record highs. the levels to watch are here. with the u.s. yen we thought -- investors digesting the boj summary of opinions that showed one board member seemingly to suggest we could see a hike in july a bit of a pullback following that on the japanese currency moving away from the 160 level has. >> that is right it is about rate differential. avril hong thank you. let's get more on markets with our next guest two things the yen remains under defensive due to the high yields deferential. when it comes to the yen really what is there to do, you

what needs to be done for it to remain stable the way the pboc has been wanting it to be? quakes in china and japan there trying hard not to have too much currency weakness, but it's not all in their heads. their new differential for the u.s. dollar is a big factor. the feds may be conservative right now, we still think they will move in september and there will help for the u.n.. haslinda: some say the pboc will have to widen the daily trading band to take into consideration how the yen might move. some suggest he could get to 170. >> i think it made up he brooded to the chinese policies and pictures defied out to reds. i think this is pretty much in line with what the japanese policymakers are trying to do as well. all eyes on the 160 level for the yen versus the dollar. haslinda: eli lee, bank of singapore. still to come, an exclusive conversation with malaysia's minister of natural resources and environment will discuss sustainability and green initiatives with the minister next. keep it here with us. we are leaving you with live pictures out of the world economic foru

keep in mind the pboc came in with the highest rate since january.u wonder how chinese authorities are thinking of the japanese yen especially with the decision due on monday. the base case is for things to be kept unchanged but bloomberg economics expects a bit of reduction. let's take a look at the stocks in focus and japan. those automakers tend to benefit from a cheaper japanese currency. we are seeing them paring earlier losses but not by much. maybe the caution around what ueda has to say. among the japanese lenders, an increase would be good for their profitability and theory, but given how the odds seem to be reduced now, we might not see the bank of japan at the next meeting. there are talks about the reduction of bond purchases and rate hikes at the same time. those might have to wait and so do the japanese lenders. quickly taking you through what we are seeing in major gauges. that's green on japan. a bit of a mixed picture in chinese equities. tom? tom: avril hong on the reaction to what we have been hearing from the bank japan. thank you

the pboc made no change to the rate this morning.he fixing is typically seen as a guide for the lpr fixing on thursday they don't always move in tandem economists are not ruling out a change or cut to the five-year which influences the price of mortgages. the rate decision came after credit data showed new bank lending in may, but respecting the slushish demand. in singapore, sam vadas, cnbc business news. >>> and the probe is set to begin today in the pork products and is expected to last for a year ramp up in trade tension is what we get from that picture what does it mean overall? we will find out with a year to go until that. >>> overall to the market picture. you are seeing apple up a quarter so far when one compares how much you lost last week, it shows how much of a recovery you need. the cac 40 lost 6% all of last week the ftse mib down 5% those were astromonical numbers. you are seeing recovery coming to the floor with the political turmoil from france, of course, that snap election called, with protests against the far righ

the likes of mizuho says the pboc is not considering qe.his is more about addressing, replenishing liquidity. we have seen yields in china fluctuating amid that comment from the governor. for context, we have been releasing a bond rally in china because of safe haven demand and expectations of rate cuts. let's put the board because the central bank that's already been really keen participant in bond markets is the boj. today, we got the meeting minutes from april. but investors seem to be shrugging that off a bit. the focus is really what we have gotten from the main meeting, june meeting, i should say, and what it's going to do in july. we are keeping a close watch on the cpi numbers due at the end of the week. we have japan reportedly considering issuing a shorter-term maturities of bonds, something else to consider for bond market participants. we see the japanese yen against the greenback not moving very much today. it is still quite weak levels, although the equities worth noting has pared much of the gains from earlier in the session.

maybe this is just a pboc waiting for the fed.t of china that we have been looking at, they said they would start. it is very tiny, but this could be the start of a more heated trade war. lisa: similar overcapacity type of arguments. it is sort of, two contango. a slow fed speak on tap this week. there are six more speakers tomorrow. richardson of adp writing this, jobs are not everything. labor market has been decent news. we see big changes afoot. i love that you can dig beneath the data at a time when it has been so confusing. can you give us a look at what could be warping some of the levels? question it is great to be with you all today. this is -- every data point seems important, but it is sometimes a cacophony. we are looking at what we think is important in the economy. that has changed significantly. we have seen shifts in geographic. not, we find that people who actually go the distance for employment make 16% more than people on their own teams. that is a huge change and it is under examined in the market. we are seein

but also opening up these are the ethics that come from the pboc's hour but what are your ethics? what is it mean to do honor to someone else's story? i find they are really excited about finding untold stories and people who were not represented in the media and being able to go out and tell those stories and then seeing them publishes the exciting thing at a high school level and seeing the response from an audience that you actually have the power to tell someone else's story and you can have some really sophisticated conversations with teenagers when they have gone out to the field and done an interview and look for soundbites, then edited it and knowing the power they have as storytellers to do that brings them to a whole another level of understanding the media that they see when they are scrolling through their feet are talking to someone about what's going on in the news. you have created that media, you really understand what you are seeing and what's happening in the media landscape at large. >> i think it will be fascinating to see over the next 10 years or so how this

recovering some lost ground now, we are also seeing today the pboc coming in with yet another week you the longest period of time in about a year, so it looks like controlled evaluation that they are trying to orchestrate, especially ahead of some of these risks later in the year. this week, we have pce numbers. we are watching out for the u.s. election as well, what that might mean for tariffs. it is also related to what we see in the japanese yen, just recapping the levels we saw overnight. in a span of about 12 hours, we saw dollar-yen going past 160, hitting 168 .7, stabilizing a bit in the asian trading session. we got some japanese retail sales number coming in stronger than expected, but let's not forget how japanese rates are just not high enough. once in the u.s. not low enough, so until the fed eases, the weakness in the yen is just a reality that we are coming to terms with. as the yuan and yen we can, they have been putting pressure on asia fx as well, on top of the greenback strength, so we are seeing central banks in asia really on guard to the fluctuations in their curre

we saw the pboc with a modest pushback via the yuan fix. onshore yuan moving toward the 726 level. across the rest of the asset classes, we are seeing stock markets tracking the gains on wall street overnight. this was as investors parsed the data coming through. it was a mixed bag on the u.s. economy, that revised downward's personal spending. we got some of these weak job numbers. stocks are doing well. we are keeping an eye on the topix. it might close at 34 your highs. taking a deeper look at the dollar. against this backdrop of the u.s. presidential debate, it is really about those pc numbers out of the u.s. tonight -- pce numbers out of the u.s. tonight. the first half of the year was dominated by the fed risk. the second half, it might be that as well as the u.s. presidential election to consider. also take a look at how cryptocurrency bitcoin was faring during the debate. we saw that spike paring some of the gains. it is not that easy to parse why exactly the cryptocurrency fared the way it did, but trump has been making some overtures towards the industry. he is seen as so

offshore yuan has earlier breach 7.30, recovering now, but we are seeing from the pboc a weak yuan fix, for the longest period in about a year, what this suggests is that central bankers are coming through with controlled devaluation ahead of risks not just from pce numbers but further outcome of the u.s. election. thing about what that might mean for tariffs on chinese goods. we are seeing the yen recovering from the 1986 low of 160.87, but of course, if japanese rates don't go high enough and the u.s. ones don't come down, we will see weakness in the yen. that needs to ease before we see any relenting in this level of weakness of the japanese currency. flip the board. that brings me to my next point. when you look at the one-week risk reversals, it suggests that options traders are not so scared about the intervention risk from japanese authorities compared to april. we are seeing them favoring the yen less compared to the dollar this time around. tom: avril hong with a deep dive on the asian markets freight ending on what is happening with the positioning around the japanese yen. we

makes you wonder the extent in which this might be affecting export competitiveness, how long the pbocill tolerate this. today we saw a yuan fix at the highest rate since january, something to keep in mind. interesting to see also that the gauges are moving into positive territory, the support from arrangement -- transport stocks in japan as were seen in the rest of the asia-pacific as hopes fade for a middle east cease-fire deal. china is very negative today, but let's cliff the board and take a closer look at what we are seeing on dollar-yen. "we can regardless of what the bank of japan does today. -- it could weaken regardless of what the bank of japan does today. the 15 day moving averages about 155 point three. the hundred day moving average around 152.5 level. that's what we are watching out for today. haslinda: there is little the boj can do, it's about rate differentials. it does matter when the fed starts cutting rates. shery, the governor's comments after the last meeting april lead to a plunge in the yen. how high are the stakes for today's meeting? shery: very high, because

that's much more a story about deflation and expectations that the central bank of china, the pboc, willconomics warns that that won't happen and to get more clarity to the position of the fed. the fed looming large in this equation as well. china's bond market has just had a stormy year as money has moved in. not necessarily an indication of health of the chinese economy. more expectations they will be compelled to cut. we flipped the board and what's happening with the u.k.. i don't know if you've been told this. bank of england day. not expected to change the rate. headline coming in at 2% yesterday. under the hood, services at 5.7%. markets readjusting. gilt yields selling at the front end. markets readjusted. now pricing in a very small chance of a cut in august. not fully priced until september or november when it comes to the boe pricing in one or two cuts this year. we will see how the statement today adjusts if et al. -- at all that pricing. we will get the u.k. business secretary and shadow business secretary going head-to-head for a live televised the bite -- debate. this is b

the pboc and china's largest and actually the world's largest company.o was end and was the company's spin off from alibaba five years earlier. and it has a very famous app called alipay kind of like a super app. it's used by over hundred million people in china, 80of the chinese population use this. and so it's successfully leverage this payment. the app into all sorts of financial the credit tech business tech business as an insurance tech business and the most successful business was the credit tap business in which th as an and as an intermediary connecting ordinary consumers, you and me, what the chinese state owned bank, how other? 98% of those loans were extended by the state owned banks and it very little skin in the game and that it means we raise a question about moral hazard rit interview the reason we wano facilitate as many long transaction as possible but it wouldn't to worry about potential default o liabilities. now in addition to this moral has a problem. there is a big bubble in making right before anz's ipo. so this firm got a market v