Tokyo recovers some losses as most Asian markets rise
Source: AFP
PAY ATTENTION: NOW You can COMMENT on our articles on the YEN website! Learn how to get started.
Tokyo stocks rose Tuesday, recovering some of the losses suffered in the previous day's rout, as the yen weakened against the dollar, while most other Asian markets started the day on a positive note following another record on Wall Street.
With Hong Kong and mainland Chinese bourses closed for a holiday after thundering higher over the past week on a raft of economic stimulus out of Beijing, focus was on Japan following the wipeout fanned by a strong yen.
The currency soared after Japan's Shigeru Ishiba -- who has backed the central bank's interest rate hikes -- won a vote Friday to lead the country's ruling party.
On Tuesday, the Nikkei climbed more than one percent in early exchanges, paring some of Monday's nearly five percent drop, as the yen pulled back against the dollar and gave beaten-down exporters some much needed relief.
Data showing Japanese business confidence remained positive in the third quarter also provided a little support.
The yen slipped to as much as 144 per dollar at one point, having sat below 142 Monday.
Traders are keeping an eye on Tokyo with Ishiba due to be sworn in as prime minister later in the day. They will be awaiting details on his plans to boost the economy, with investors concerned that he could unveil corporate tax hikes.
The yen's weakness came after Federal Reserve boss Jerome Powell indicated the bank would keep cutting interest rates but the pace would take time.
He told the National Association for Business Economics annual meeting in Tennessee that the battle against inflation was progressing and officials' two percent target was within range, adding that "broader economic conditions also set the table for further disinflation".
While he said that more cuts would come if the economy continues to perform as expected, he stressed the bank was not on a "preset course" and decisions would be made based on data.
"We're looking at it as a process that will play out over some time, not something that we need to go fast on," he added.
Ray Attrill at National Australia Bank said Powell was "clearly not ruling out the prospect of further 50-basis-points move(s) in future, and in which respect he highlighted that while still solid, the labour market really has cooled and that the job-finding rate has come down significantly."
Powell's remarks followed figures last week showing the Fed's preferred gauge of inflation slowed further in August, and ahead of key jobs figures out Friday that could determine how big the bank cuts at its next meeting.
"A somewhat weak headline jobs growth could propel markets to price in another 50-basis-point rate cut from the Fed in November," said Charu Chanana, head of forex strategy at Saxo Capital Markets.
All three main indexes on Wall Street rose, with the Dow chalking up another record, and most of Asia followed suit.
Wellington, Taipei, Manila, Jakarta and Singapore all rose but Sydney dipped.
Shanghai, Hong Kong and Seoul were closed for holidays.
Shanghai's stock market jumped more than eight percent Monday -- its best day since 2008 -- and Shenzhen more than 10 percent, a day before Chinese markets shut for the Golden Week holiday.
Key figures around 0230 GMT
Tokyo - Nikkei 225: UP 1.5 percent at 38,476.33 (break)
Hong Kong - Hang Seng Index: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Euro/dollar: UP at $1.1138 from $1.1137 on Monday
Pound/dollar: UP at $1.3381 from $1.3374
Euro/pound: DOWN at 83.21 pence from 83.25 pence
Dollar/yen: UP at 143.90 yen from 143.63 yen
West Texas Intermediate: UP 0.1 percent at $68.24 per barrel
Brent North Sea Crude: UP 0.1 percent at $71.78 per barrel
New York - Dow: UP less than 0.1 percent at 42,330.15 (close)
London - FTSE 100: DOWN 1.0 percent at 8,236.95 (close)
New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!
Source: AFP
