Talking Points:
- Most Asian stock markets fell Monday
- The US Dollar weakened against the Japanese Yen, although it was steadier elsewhere
- Rampant Bitcoin Topped $9,600
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The start of a new week found Asia Pacific stock markets in general ‘risk off’ mode Mnday, despite a stronger lead from Wall Street Friday.
Japans’s Nikkei 225 made early gains but they failed to hold and the index ended down 0.2%. South Korea’s Kospi was lower, with tech stocks weighing after Morgan Stanley’s downgrade of Samsung. Mainland Chinese markets slipped as investors focused on rising bond yields, while Hong Kong stocks fell on some profit taking in property plays. Only Australia’s ASX 200 managed to buck the gloomy trend. It rose as resource names held up.
The session was short of economic pointers. Chiense industrial companies saw their profits grow 25.1% on-year in October. Punchy Bitcoin made yet another record high, topping $9,600.
The US Dollar was under pressure against both the Euro and Japanese Yen. The former was still feeling the tailwind of strong German data before the weekend. The US Federal Reserve’s worries about inflation weakness seem to be undermining sentiment toward the greenback in advance of mid-December’s monetary policy meeting.
Crude oil prices retreated from two year highs on news of increased US output but the markets are looking to November 30’s OPEC meeting at which production cuts are expected to be extended.
The remainder of the session is short of likely economic leads with only new-home sales numbers out of the US likely to draw a market crowd.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
