31 Jan 2014
Flash: Nikkei sells post lunch, weighs on Yen crosses
FXstreet.com (Bali) - While today's late wild moves in Asia were somewhat overdone, the outcome is not entirely unexpected in anticipation of thinner liquidity, as most Asian financial centers were closed due to the Chinese new year. Among the few exceptions, Australia, New Zealand and Japan, all remained open for business.
The Yen had a very decent late run, strengthening from 102.90 all the way to test bids at 102.30, with the Nikkei 225 erasing all its early gains to fall by more than 1% post lunch break. According to Reuters survey, Japan fund managers cut stock allocations to 45% in Jan from 45.3% in Dec, a piece of news that could have weighed on the index.
The Australian Dollar was also weighed by sales in AUD/JPY, with the rate coming sharply lower off 0.8820 (third failed attempt), only stalling the fall around 0.8750. The New Zealand Dollar continued to trade weak, after RBNZ Gov Wheeler said the over-valued Kiwi is a concern, while linking the pace of the upcoming rate hikes cycle to incoming domestic data in the country.
Fundamentally, New Zealand released strong trade figures, with exports to China the main contributor to its upbeat results. In Japan, inflation numbers came mixed, with improvements seen nationwide for Dec (outdated) but stagnant levels vs the prior month were observed in the Tokyo area (more updated as stats refereed to Jan).
Main headlines in Asia
New Zealand trade balance at the upper end of expectations
Japan's spring wage offensive underway
Japan Nomura/ JMMA Manufacturing Purchasing Manager Index rises to 56.6 in January from 55.2
Japan's inflation data mixed
RBNZ's Wheeler speech: Adjustment in rates to begin soon
Abe: Government panel to mull corp tax as soon a February
The Yen had a very decent late run, strengthening from 102.90 all the way to test bids at 102.30, with the Nikkei 225 erasing all its early gains to fall by more than 1% post lunch break. According to Reuters survey, Japan fund managers cut stock allocations to 45% in Jan from 45.3% in Dec, a piece of news that could have weighed on the index.
The Australian Dollar was also weighed by sales in AUD/JPY, with the rate coming sharply lower off 0.8820 (third failed attempt), only stalling the fall around 0.8750. The New Zealand Dollar continued to trade weak, after RBNZ Gov Wheeler said the over-valued Kiwi is a concern, while linking the pace of the upcoming rate hikes cycle to incoming domestic data in the country.
Fundamentally, New Zealand released strong trade figures, with exports to China the main contributor to its upbeat results. In Japan, inflation numbers came mixed, with improvements seen nationwide for Dec (outdated) but stagnant levels vs the prior month were observed in the Tokyo area (more updated as stats refereed to Jan).
Main headlines in Asia
New Zealand trade balance at the upper end of expectations
Japan's spring wage offensive underway
Japan Nomura/ JMMA Manufacturing Purchasing Manager Index rises to 56.6 in January from 55.2
Japan's inflation data mixed
RBNZ's Wheeler speech: Adjustment in rates to begin soon
Abe: Government panel to mull corp tax as soon a February