Japanese stocks advanced amid a weak yen even as the rest of Asia struggled for momentum following a late selloff on Wall Street. The dollar strengthened against most major peers. The yen pared some of its loss after initially sliding to its lowest level versus the dollar in about 34 years following Japan’s Finance Minister Shunichi Suzuki’s stern intervention warning. The currency’s drop has fanned speculation that the nation will step up its efforts to stem the decline, and put the Nikkei 225 index on course for a record closing high. Investors have driven the yen higher after “dovish comments” from BOJ board member Naoki Tamura, said David Forrester, Singapore-based senior FX strategist at Credit Agricole. “The warning by Kanda earlier this week suggests the BOJ’s finger will be on the trigger for FX intervention,” he said, referring to Japan’s vice finance minister for international affairs Masato Kanda. Shares retreated in China and Hong Kong, with technology companies accounting for the majority of the losses. The decline came as the region’s AI-linked companies mirrored the overnight fall in Nvidia’s shares, and as Alibaba’s plan to shelve listing of its logistics arm soured sentiment.
Japan’s Nikkei 225 is one of few Asian equity gauges that are able to match the pace of the US rally — advancing more than 20% this year and on track for one of its best quarters ever. Hong Kong has been unable to fully recover after plunging at the start of the year and is headed for a slight decline in the three-month period, while Sydney is set to post a modest gain. Even the recent advance in Chinese stocks will likely be tested, as key financial institutions announce earnings, starting with Industrial & Commercial Bank of China Ltd. later Wednesday. Alibaba Group Holding Ltd. declined in Hong Kong, and was poised for its lowest close since January, after the company called off a $1 billion-plus initial public offering for its Cainiao logistics arm. Chinese EV giant BYD Co. also fell after reporting 2023 profit that missed estimates. Apple Inc.’s iPhone shipments in China dropped about 33% in February from a year ago, according to official data, extending a slump in demand for the flagship device in its most important overseas market. US stock futures extended their gains pointing to a rebound on Wall Street after the S&P 500 declined for a third day on Tuesday. The US equity benchmark is on track to notch five straight months of gains, but traders are debating whether the road gets rougher for the $4-trillion rally to keep chugging along as stock valuations remain elevated relative to history. Treasuries steadied in Asian trading after rebounding from session lows on Tuesday following a $67 billion sale of five year-notes. The yen slumped to the lowest level in about 34 years against the greenback on expectations Japan’s wide yield gap with the US will remain even though the Bank of Japan has ended its negative interest rate policy. The dollar was slightly stronger against its Group-of-10 peers, while the offshore yuan was little changed weaker after the People’s Bank of China once again boosted support for the currency. Profits at China’s industrial companies increased in the first two months of the year, extending a gaining streak since August and adding to positive signs in the economy. Oil extended a modest decline after an industry report pointed to a sizable build in US inventories, and wider markets struck a weaker tone ahead of the end of the quarter. Gold fell, but traded close to its record. As traders geared up for the Fed’s preferred inflation gauge on Friday — when markets will be closed — they parsed the latest economic readings. US consumer confidence held steady, durable goods orders climbed while home-price growth accelerated at the fastest rate since 2022. US After Hours NCNO +11.9%, NOAH +3.8% higher on earnings; GME -14.4%, CNXC -3% lower on earnings; MRK +4.8% as FDA approves Winrevair; ROIV +5% higher as it will join S&P MidCap 400.
Nikkei +0.90% Hang Seng -0.95% CSI -0.57% Shanghai -0.60% Shenzen -1.85%
Eur$ 1.0830 CNH 7.2542 CNY 7.2275 JPY 151.68 GBP 1.2618 CHF 0.9038 RUB 92.4751 TRY 32.2254 WTI$ 80.87 -0.92% Gold 2,179 BTC 70,480 +0.92% ETH 3,612 +0.99%
S&P +0.32% Nasdaq +0.32% EuroStoxx -0.08% FTSE -0.03% Dax +0.01% SMI +0.07%
Macro :
- EU Warns Election Deepfakes Start to Surface in Member Nations
- Traders Need to Consider a Much More Hawkish BOJ: Macro Models
- Hashdex Fund Targets March 27 to Trade as Spot-Bitcoin ETF (1)
Keep an eye on :
Keep an eye on :
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