May 12: Asian session
Capital markets are cautious as the Ukraine crisis remains in focus. Investors are ready for a possible escalation in Ukraine's civil conflicts after anti-Kiev rebels declared victory in the separation referendum. Russia president Putin didn’t give any comments on the situation so far.
Chinese shares were boosted by hopes of capital market reform, while Indian shares jumped to record high on the prospect of a more business-friendly government winning India's general election, with exit polls later coming out later in the day. MSCI Asia-Pacific stock index outside Japan added 0.6% during the session.
USD/JPY was the most active currency in the session, opening the week with a bullish gap. Gains were capped by the 102.05 mark so far. AUD/USD added 30 pips, but holds below the $0.9400 mark, while NZD/USD consolidates around $0.8620. Both EUR/USD and GBP/USD are well-bid following the last week’s sharp selloff.
There is a lack of major economic releases on Monday. On Tuesday watch the industrial production and retail sales in China and the retail sales in the US.