FX Action: USD-JPY has lifted to a fresh two-month high
FX Action: USD-JPY has lifted to a fresh two-month high at 112.80 amid a backdrop of a coursing risk-on theme in global markets. The Dow and S&P 500 hit record highs yesterday, and Asian stocks have rallied robustly, across the board. Japan's Nikkei 225 hit a four-month high, and the Shanghai Composite a two-week high, with both showing gains of 1% or more. Expectations for China to turn the fiscal stimulus tap, among other measures, have been helping underpin sentiment in Asia, while the unexpectedly low starting tariff rate of 10% in Trump's latest move on Chinese imports this week, along with tech sector exemptions, have helped sentiment, while global fundamentals remain otherwise solid, despite the threat from the trade war escalation (with Beijing not expected to negotiate until after the mid-term elections in the U.S.).