Asian markets rebound strongly; Aussie dollar just shy of 1.0600 against US dollar
City Index April 20, 2011 2:47 PM
<p>A sian markets rebounded today after the massive sell-off on Tuesday on the back of concerns on US sovereign debt. Both the Nikkei and Hang […]</p>
sian markets rebounded today after the massive sell-off on Tuesday on the back of concerns on US sovereign debt. Both the Nikkei and Hang Seng Indices were up around 1.84% and 1% respectively.
In Japan, stocks advanced for the first time in four days after U.S housing starts increased and earnings beat estimates at companies including Johnson & Johnson signalling the world’s biggest economy is recovering.
Fanuc Corp, Japan’s biggest maker of industrial robots gained 2.3%. Toshiba Corp, Advantest Corp and other makers of chips and related tools advanced after Intel Corp forecast sales that may top estimates. Inpex Corp, the nation’s largest oil explorer soared 2.4% as crude prices rose.
In Hong Kong, Techtronic Industries Co, maker of Hoover vacuum cleaners and Ryobi power tools, jumped 2.6%. HSBC Holdings Plc which made 20% of its 2009 revenue in North America, rose 1%. Wynn Macau Ltd, a unit of the casino operator founded by billionaire Steven Wynn, advanced 3.3% after reporting higher first quarter profit.
In Australia, the Australian dollar almost reached the 1.0600 level against the US dollar when it briefly touched 1.0599 during the Asian trading session. With the Easter long weekend coming up, we’re seeing less volume in the FX market today.
The Euro continues to be strong, trading around the 1.44 mark today. Further speculation that the European Central Bank (ECB) will raise rates again next month and the Bank of England will follow suit has pushed the US Greenback lower against many of the risk currencies.
At this stage, there seems to be growing downward pressure on the US dollar (compared to the other majors), which may not be lifted in the near term.
Many ears will be on the release of the Bank of England minutes later tonight for any indication its Governor Mervin King is ready to strike and be the second central bank in Europe to push their head above the parapet and announce a reverse in monetary policy after the GFC.
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