Yen weighs on Japan shares, Asia stocks tip gains

iStock

Sydney - The yen strengthened in early trading, likely weighing on shares in Tokyo when Japan’s market opens. Asian equities elsewhere were poised for gains.

Stock-index futures in China, Australia, and Hong Kong pointed to a higher open for cash markets. Australian bonds declined.

The dollar fell against Japan’s currency as Asian traders reacted for the first time to Donald Trump’s inauguration and comments by Bank of Japan Governor Haruhiko Kuroda that the greenback could strengthen.

Trump began work as US President after saying he’d place American interests at the forefront of his agenda. His pro-growth campaign-trail pronouncements helped drive a rally in equities since November, while the dollar surged and bonds slumped. Some of those trades are unwinding this month as investors assess whether those moves had pushed prices too far, too fast.

Money managers will be dissecting earnings from some of the world’s largest companies this week with Alphabet, Samsung Electronics and Alibaba all reporting results.

“Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation,” said Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, which manages about $120bn.

“Shares remain vulnerable to a further correction or consolidation in the next month or so.”

Here are the main moves in markets:

The yen rose 0.2% to ¥114.40/$ as of 08:50. The Bloomberg Dollar Spot Index has fallen for four straight weeks, its longest retreat since February.

The yield on 10-year Australian government bonds rose one basis point to 2.79%.

Futures on Australia’s S&P/ASX 200 Index rose 0.5%, while those on the Hang Seng and the FTSE China A50 indices both added 0.2%.

New Zealand’s S&P/NZX 50 Index fell 0.1%. Futures signaled a mixed open for Japanese equities. The S&P 500 Index advanced 0.3% on Friday.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.00
+0.3%
Rand - Pound
19.80
+0.2%
Rand - Euro
17.01
+0.2%
Rand - Aus dollar
10.97
+0.2%
Rand - Yen
0.13
+0.2%
Gold
1,837.73
+0.1%
Silver
27.63
+1.2%
Palladium
2,947.04
-0.5%
Platinum
1,240.64
-0.8%
Brent Crude
68.32
+0.1%
Top 40
61,320
-1.7%
All Share
67,241
-1.7%
Resource 10
70,627
-2.1%
Industrial 25
84,184
-1.7%
Financial 15
12,659
-0.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1411 votes
No, I did not.
52% - 3534 votes
My landlord refused
27% - 1875 votes
Vote