Tokyo, Japan (BBN) – Asian markets were negative on Tuesday following the sluggishness in global equities amid risk-off sentiment.
Spot gold, viewed as a safe-haven asset, was trading at $1,233.56 per ounce, up for the fifth straight session and at a three-month high, reports CNBC.
The Japanese yen, another safe-haven play due to its large current account surplus, has appreciated strongly against major currencies.
“Investors are nervous about the economy and President Trump’s policies,” said Kathy LIen, managing director of FX strategy for BK Asset Management, in a late Monday note.
Also, “Trump has been on a campaign to pressure other countries to strengthen their currency which effective means he wants the dollar to weaken,” Lien added.
The yen was fetching 111.68 per dollar in early Asian morning, falling below the 112 handle yesterday.
Against the euro, the yen traded at 119.75, versus levels above 121 seen last week.
Japan’s Nikkei 225 lost 0.88 per cent on the back of continued yen strength.
Toyota Motor shares were down 2.4 per cent, its lowest since November last year, after the automaker raise its operating profit forecast short of the market expectation, Reuters reported.
Australia’s S&P/ASX 200 fell 0.37 per cent, weighed by its financials component which was down 0.9 per cent, and its energy component, which fell 0.52 per cent.
The benchmark index’s gold sub-index outperformed, up 3.3 per cent as gold prices surge.
Investors also await the Reserve Bank of Australia’s interest rate decision, expected to hold steady at a record low 1.50 per cent.
“While the low September quarter inflation reading leaves the door wide open for another rate cut, a move on Tuesday is unlikely as the inflation outcome was in line with the RBA’s own forecast,” said Shane Oliver, head of investment strategy and chief economist at AMP capital, in a weekly note.
“It’s likely to want to monitor the recent uptick in lending to property investors and see how the economy performs after the September quarter slump.”
On the central bank news front, the Reserve Bank of New Zealand Governor Graeme Wheeler announced that he would not be seeking a second term when his current five-year term ends on Sept. 26.
The South Korean Kospi slipped 0.26 per cent.
South Korea’s SK Hynix fell 0.74 per cent, after it submitted an initial bid to acquire a stake in Toshiba’s memory chip business, Reuters reported.
Toshiba shares also fell, down 0.83 per cent.
The Japanese conglomerate is making its core memory chip business a separate company and seeking outside investment, as it faces a multi-billion dollar write-down for its U.S. nuclear construction business.
China’s Shanghai composite dipped 0.02 per cent and Shenzhen composite was up just 0.07 per cent.
Hong Kong’s Hang Seng index fell 0.1 per cent, paring back yesterday’s gains of more than 0.9 per cent.
Asian markets were negative on Tuesday following the sluggishness in global equities amid risk-off sentiment.
Spot gold, viewed as a safe-haven asset, was trading at $1,233.56 per ounce, up for the fifth straight session and at a three-month high.
The Japanese yen, another safe-haven play due to its large current account surplus, has appreciated strongly against major currencies.
“Investors are nervous about the economy and President Trump’s policies,” said Kathy LIen, managing director of FX strategy for BK Asset Management, in a late Monday note.
Also, “Trump has been on a campaign to pressure other countries to strengthen their currency which effective means he wants the dollar to weaken,” Lien added.
The yen was fetching 111.68 per dollar in early Asian morning, falling below the 112 handle yesterday. Against the euro, the yen traded at 119.75, versus levels above 121 seen last week.
US stocks fell on Monday, dragged by a drop in oil prices amid uncertainty over US President Donald Trump’s policies.
The Dow Jones industrial average was down 0.09 per cent to close at 20,054.42, the S&P 500 index fell 0.21 per cent to end at 2,292.56, while the Nasdaq composite finished down 0.06 per cent at 5,663.55.
European equities were also lower on Monday, with the pan-European Stoxx 600 down 0.68 per cent, amid political uncertainty in France and fears of a “Frexit.”
In currency markets, the dollar was at 99.907 against a basket of currencies on Tuesday in Asia.
The Australian dollar traded slightly weaker at $0.7635.
The euro fell against the dollar to trade at $1.0729.
Oil prices recovered from more than 1 per cent declines on Monday during US hours, on supply concerns and growing tensions between Washington and Tehran.
US crude were up 0.28 per cent at $53.16 a barrel, as Brent futures added 0.31 per cent to $55.89.
BBN/SK/AD