Asian Stocks Higher, Japan Jawboning Sees USD/JPY Gain
- Most Asian stocks were in the green as Tuesday’s session played out
- The ASX was an exception as investors cashed out of miners
- The US Dollar still looks weak but it rose a little from Monday’s lows
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Most Asian markets were higher again Tuesday. The lack of a Wall Street lead thanks to a US holiday Monday kept investors nursing older themes with the still-weaker US Dollar giving the region’s plentiful exporters a lift. However US equity futures pointed to a strong open.
The Nikkei 225 closed up 1%, with most other bourses in the green. Australia’s ASX was a notable exception. It slipped 0.5% as the mining sector saw some profit taking. Hong Kong’s Hang Seng returned to gains after snapping a 14-session winning streak on Monday.
The Euro held steady close to three-year highs against the US Dollar although the broad Dollar index pulled up a little from Monday’s three-year low. The greenback was a little stronger against the Japanese Yen with the latter's gains limited by official comment out of Japan.Finance Minister Taro Asp told reporters that sudden moves in the currency were a problem.
Crude oil prices remained near their own three-year peaks, supported by a heady combination of production cuts and stronger demand. Gold prices held close to a four-month high, buoyed up by the Dollar’s weakness. Bitcoin and other cryptocurrencies slipped as a report circulated that a Chinese central bank official recommended the banning of their trade.
There’s a British flavor to much of the day’s remaining economic data. Offical UK Consumer Price Index data will steal the show, with the house-price index playing a supporting role. From the US will come the Empire Manufacturing Survey.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX