By Pratish Narayanan & Yoshiaki Nohara - May 13, 2013 2:43 PM GMT+0800
Article from http://www.bloomberg.com/news/2013-05-12/yen-falls-beyond-102-as-g-7-tolerates-drop-s-p-futures-decline.html
Japanese stocks climbed, bonds fell and the yen touched the weakest level since October 2008 as Group of Seven officials indicated they will tolerate a decline in the currency. European stock futures gained, while gold and oil slid.
Japan’s Topix Index (TPX) jumped 1.8 percent at 7:42 a.m. in London, as 10-year bond yields rose 11 basis points to 0.8 percent, the highest since Feb. 6. The yen was little changed at 101.65 a dollar after falling to 102.15 earlier today. Euro Stoxx 50 contracts were up 0.2 percent, indicating the region’s shares may rise for a fifth day. Standard & Poor’s 500 Index futures lost 0.3 percent after the measure closed at a record high last week. Spot gold and oil in New York sank 0.9 percent.
While signaling acceptance of the yen’s decline, G-7 policy makers said they examined Japan’s strategy and that they will monitor its impact on currencies. Data today showed China’s fixed-asset investment unexpectedly decelerated last month while industrial output trailed estimates. Italy, France and Iceland are due to sell debt today.
“Markets are prepared to back Japanese authorities’ attempt to reflate in terms of a weaker yen and expanding monetary base,” said Tim Schroeders, a portfolio manager who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “The export sector from Japan will be an obvious beneficiary of that.”
The yen has weakened about 15 percent against the dollar this year as a leadership change in the Bank of Japan initiated unprecedented monetary easing. G-7 policy makers reaffirmed a February commitment to “not target exchange rates,” U.K. Chancellor of the Exchequer George Osborne told reporters May 11. Bonds fell, sending U.S. Treasury 10-year yields to 1.94 percent, the highest level since March 26.
Chinese Data
The Topix closed at the highest level since August 2008 as Toyota Motor Corp., the world’s biggest carmaker, climbed 3.8 percent. Nomura Holdings Inc. (8604), Japan’s biggest brokerage, surged 9.6 percent on optimism rising trading volumes will boost earnings. Nippon Telegraph & Telephone Corp. jumped 4.1 percent after forecasting profit that beat estimates.
The MSCI Asia Pacific excluding Japan Index sank 0.6 percent, as Chinese companies dragged Hong Kong’s Hang Seng Index down by 1.2 percent. Most of the declines came before China’s statistics bureau said fixed-asset investment excluding rural households in the first four months of the year increased 20.6 percent, compared with 20.9 percent in the first quarter. Production grew 9.3 percent in April from a year earlier and retail sales climbed 12.8 percent, according to the agency.
Aussie, Won
“The statistics from China are still looking soft and if there is not enough growth momentum from China, that’s going to affect Chinese-related markets like Hong Kong,” said Tim Leung, a portfolio manager who helps oversee about $1.5 billion at IG Investment Ltd. in Hong Kong.
The Australian dollar fell toward an 11-month low before data on business confidence and amid speculation the central bank will cut interest rates further to curb the currency’s strength. The so-called Aussie lost 0.4 percent to 99.90 U.S. cents. South Korea’s won dropped for a third day, falling 0.5 percent against the greenback to 1,111.78.
Gold declined for a third day in the longest slump since April, when the metal entered a bear market, as holdings of the SPDR Gold Trust, the biggest gold-backed exchange-traded product, resumed a drop and the dollar strengthened. Spot gold sank 0.9 percent to $1,436.18 an ounce.
Crude in New York dropped 0.9 percent to $95.21 a barrel, as the Organization of Petroleum Exporting Countries boosted output to the highest level in five months. Oil fell for a third day, the longest losing streak in four weeks.
To contact the reporters on this story: Pratish Narayanan in Mumbai at pnarayanan9@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
Pratish Narayanan & Yoshiaki Nohara - May 13, 2013 2:43 PM GMT+0800
Article from http://www.bloomberg.com/news/2013-05-12/yen-falls-beyond-102-as-g-7-tolerates-drop-s-p-futures-decline.html
Article from http://www.bloomberg.com/news/2013-05-12/yen-falls-beyond-102-as-g-7-tolerates-drop-s-p-futures-decline.html
Japanese stocks climbed, bonds fell and the yen touched the weakest level since October 2008 as Group of Seven officials indicated they will tolerate a decline in the currency. European stock futures gained, while gold and oil slid.
Japan’s Topix Index (TPX) jumped 1.8 percent at 7:42 a.m. in London, as 10-year bond yields rose 11 basis points to 0.8 percent, the highest since Feb. 6. The yen was little changed at 101.65 a dollar after falling to 102.15 earlier today. Euro Stoxx 50 contracts were up 0.2 percent, indicating the region’s shares may rise for a fifth day. Standard & Poor’s 500 Index futures lost 0.3 percent after the measure closed at a record high last week. Spot gold and oil in New York sank 0.9 percent.
While signaling acceptance of the yen’s decline, G-7 policy makers said they examined Japan’s strategy and that they will monitor its impact on currencies. Data today showed China’s fixed-asset investment unexpectedly decelerated last month while industrial output trailed estimates. Italy, France and Iceland are due to sell debt today.
“Markets are prepared to back Japanese authorities’ attempt to reflate in terms of a weaker yen and expanding monetary base,” said Tim Schroeders, a portfolio manager who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “The export sector from Japan will be an obvious beneficiary of that.”
The yen has weakened about 15 percent against the dollar this year as a leadership change in the Bank of Japan initiated unprecedented monetary easing. G-7 policy makers reaffirmed a February commitment to “not target exchange rates,” U.K. Chancellor of the Exchequer George Osborne told reporters May 11. Bonds fell, sending U.S. Treasury 10-year yields to 1.94 percent, the highest level since March 26.
Chinese Data
The Topix closed at the highest level since August 2008 as Toyota Motor Corp., the world’s biggest carmaker, climbed 3.8 percent. Nomura Holdings Inc. (8604), Japan’s biggest brokerage, surged 9.6 percent on optimism rising trading volumes will boost earnings. Nippon Telegraph & Telephone Corp. jumped 4.1 percent after forecasting profit that beat estimates.
The MSCI Asia Pacific excluding Japan Index sank 0.6 percent, as Chinese companies dragged Hong Kong’s Hang Seng Index down by 1.2 percent. Most of the declines came before China’s statistics bureau said fixed-asset investment excluding rural households in the first four months of the year increased 20.6 percent, compared with 20.9 percent in the first quarter. Production grew 9.3 percent in April from a year earlier and retail sales climbed 12.8 percent, according to the agency.
Aussie, Won
“The statistics from China are still looking soft and if there is not enough growth momentum from China, that’s going to affect Chinese-related markets like Hong Kong,” said Tim Leung, a portfolio manager who helps oversee about $1.5 billion at IG Investment Ltd. in Hong Kong.
The Australian dollar fell toward an 11-month low before data on business confidence and amid speculation the central bank will cut interest rates further to curb the currency’s strength. The so-called Aussie lost 0.4 percent to 99.90 U.S. cents. South Korea’s won dropped for a third day, falling 0.5 percent against the greenback to 1,111.78.
Gold declined for a third day in the longest slump since April, when the metal entered a bear market, as holdings of the SPDR Gold Trust, the biggest gold-backed exchange-traded product, resumed a drop and the dollar strengthened. Spot gold sank 0.9 percent to $1,436.18 an ounce.
Crude in New York dropped 0.9 percent to $95.21 a barrel, as the Organization of Petroleum Exporting Countries boosted output to the highest level in five months. Oil fell for a third day, the longest losing streak in four weeks.
To contact the reporters on this story: Pratish Narayanan in Mumbai at pnarayanan9@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
Pratish Narayanan & Yoshiaki Nohara - May 13, 2013 2:43 PM GMT+0800
Article from http://www.bloomberg.com/news/2013-05-12/yen-falls-beyond-102-as-g-7-tolerates-drop-s-p-futures-decline.html