Asia today - Japanese no volatility, a selection of China insights and iron ore prices/trade weighted exchange rates in Australia

Asia today starts with an interesting paragraph excerpt from a Bloomberg article on Japan:

'Historical price volatility on Japanese bonds slid to a 2 1/2-year low of 0.913 percent on June 13 and a lack of activity delayed the start of trading for four days last week. The yen has been in a 4.68-yen range since Jan. 1, the tightest since Japan ended currency controls four decades ago. Average trading on the Topix index is near its lowest level in 1 1/2 years'.

Interesting to see the Nikkei back down below 15,000 index points today too.  The high wire economic management act continues - and volatility cannot stay this low.  Inevitably more indirect taxes are a-coming:

'#Abe pushing to cut #Japan corporate tax rate under 30%. No details, but wld be radical move. Jp cor tax among highest in rich world/region'

(Source: @robertalanward)

The Shanghai bourse does remain over 2,000 index points though.  Three interesting charts on China today which highlights the 'breadth' of the story (and hence in my view the scope of some selected stockpicking opportunities).  The good chart is that the (data) surprise index has pushed up nicely:

 

(Source: Aviate Global)

 

The interesting is that who knew the Chinese corporate bond market/prospective demand was so big?  This was cited by Fast FT from a S&P report:

 

 

The ugly was this chart on the shadow banking expansion...no real explanation required!  

 



 

Turning to Australia finally, I had not appreciated that the iron ore price in AUD terms was where it was.  Great insight into conditions on the ground / supply & demand etc. 

The trade-weighted FX also seems to be failing.  Am still short the Australian index and looking for an opportunity to short the AUD.