by Martin Armstrong
Asia did not provide much direction overnight as core indices were pulled in either direction. The Nikkei was the top performer, closing just under 1% better having spent most of the day in negative territory. The JPY strengthened as the day progressed but has just retraced much of that and is closing around mid-range for the day around 107.00. Stocks failed to capitalize on rising oil prices even as it broke the $51 mark. Dealers continue to discuss the “lower for longer” term and hence are happy sticking with fixed-income for safety and yield. Lots of talk about the proposed Income Tax in Saudi Arabia for expats. Still very much in the discussion stage but worthy of discussion even as the oil price climbs. China’s May exports were released lower than expected, which obviously hit stocks late on. The yuan was also back in the spotlight as it was marked lower this week by PBoC (off-shore was last seen trading at 6.5670).