MARKET VIEW - China's Stimulus Package Disappoints Yuan Investors

Forex - The yuan slightly weakened against the dollar during the Asian session. Ken Cheung from Mizuho Securities Asia stated that China's stimulus plan announced on Friday disappointed yuan bulls, as the size of the local government debt swap plan only reached the lower end of market expectations.

FX Strategy Director Ken Cheung emphasized that despite the yuan's weakness, the PBOC has shown little intention to defend the currency by "reactivating CNY fixing policy support." Cheung remarked, "This indicates that the PBOC is comfortable with CNY movements following the U.S. elections," also noting that excessive currency fluctuations have mostly been kept under control.