Asian Stocks Mixed, Subdued As investors Eye Trump In Asia
- Asian stocks had a mixed, narrow Monday session
- Local earnings stories were the main drivers
- The Dollar rose modestly but broadly across the board
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Asian stocks got off to a slow and mixed start to the week with investors looking to local and US earnings reports and keeping at least an eye on US President Donald Trump’s regional tour.
Wall Street’s Friday lead was positive, despite a mixed official employment report. The Nikkei 225 returned to trade Monday after a long weekend. It managed to gain, but only by 0.04%. Automakers led the way higher, with the exception of Mazda which slipped thanks to weaker-than-expected profits. South Korea’s Kospi fell 0.4% with the ASX 200 down 0.1%. Shanghai stocks rose but those in Hong Kong came under pressure.
The Japanese Yen showed little reaction to strong service-sector data and an as-expected set of monetary-policy-meeting minutes from the Bank of Japan. However, it slipped quite sharply in the wake of a speech from BoJ Governor Haruhiko Kuroda. This was a little puzzling as he offered nothing new, merely another commitment to keep policy loose until inflation rises to target. The Yen did make back much of its losses as the session went on. The US Dollar gained modestly but broadly as investors still look to the prospect of higher US interest rates despite last Friday’s slightly underwhelming labour data.
There’s no first-tier economic data on the slate for the remainder of Monday. One event which may grab some attention. New York Federal Reserve Head of Markets Simon Potter will speak on “Policy and Balance Sheet.”
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.