China’s central bank increases Hong Kong bond access quota as USD/CNY fixing misses estimates, signaling yuan support measures.
The People’s Bank of China raised the Southbound Bond Connect quota to 800bn CNY, expanding Hong Kong’s gold and bond market links. The move coincides with a USD/CNY central rate fix at 6.8054, weaker than the 6.7838 estimate, reflecting yuan depreciation pressure.
Asian equities fell sharply, led by a 6% drop in the KOSPI, as Samsung’s record profit failed to offset broader tech sector declines. The yen remained under scrutiny despite softer Japan wage data, with markets assessing the Bank of Japan’s policy trajectory.
BTC/USD rose amid reports of a U.S. agency turf war over a proposed strategic Bitcoin reserve, while oil markets reacted to renewed attacks in the Strait of Hormuz.