TOKYO -Currencies weakened across Asia on Monday amid growing expectations of a US interest rate increase, but while Japan stocks got some welcome relief, emerging-market equities fell.
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A man walks past an electronic stock board showing index of Japan’s Nikkei 225, left, and New York Dow at a securities firm in Tokyo, Tuesday, Aug. 30, 2016. Asian shares were mostly higher Tuesday as hopes continued for a U.S. Federal Reserve intere. Asian stock markets were volatile on Friday with Tokyo stocks and USA futures plunging as early vote results on whether Britain should stay in the European Union showed a tight race.
OVERSEAS: France’s CAC 40 lost 0.7 percent and Germany’s DAX fell 0.5 percent.
The weaker yen could not help Japan’s Nikkei index extend Monday’s more than two percent rally, and it ended down 0.1 percent. US shares were set for a quiet open, with Dow and S&P 500 futures both unchanged.
Despite hawkish comments last week from both Fed Chair Janet Yellen and Vice Chair Stanley Fischer, markets still price in less than 50 percent chance of a rate rise in September.
The major European stocks opened lower but saw some volatility in early trading, although the averages confined themselves below the unchanged line amid a lack of risk appetite.
Asked at the conference about the use of “helicopter money”, or central bank financing of what are in essence fiscal programs, Kuroda said there were limits to that under Japanese law.
“The market’s focus has now turned to nonfarm payrolls this Friday, which is set to be a key determinant of the Fed’s rate-hike decision in September”, wrote Margaret Yang, a market analyst at CMC Markets in a note.
JOBS DATA: Global markets are awaiting the U.S. Labor Department monthly jobs data, being released Friday, for signs on whether a U.S. recovery is on solid footing.
Underpinning the yen, data released early in the session showed Japanese household spending fell less than expected last month and the jobless rate hit a two-decade low.
In Australia, Rio Tinto Ltd. gained 0.8% and Oil Search Ltd. ended up 1.6%, while in Japan, Sumitomo Metal Mining Co. closed up 2.2% and Japan Petroleum Exploration Co. added 1.7%.
Elsewhere in the region, Hong Kong’s Hang Seng Index rose 1%, the Shanghai Composite Index was up 0.2 and Korea’s Kospi closed 0.4% higher.
Brent crude futures LCOc1 were up 17 cents at $49.43 a barrel, while USA crude CLc1 added 21 cents to $47.19. It had fallen 66 cents to $46.98 a barrel Monday. Addressing the recent struggle with inflation that even in view of the recent massive bond buying schemes and the negative interest rate policies, the country’s inflation rate have failed to mount a rebound after the fall of oil prices in 2014.
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In morning trade the dollar rose to 102.14 yen from 101.88 yen in NY, with the Japanese unit also dragged by comments from the country s top central banker suggesting a further loosening of monetary policy by Tokyo. The euro was at $1.1168-1169, down from $1.1181-1182, and at ¥114.34-34, down from ¥114.38-39.
