Asian stocks gave up some gains

<p>Asian stocks were mostly higher although by modest amounts in afternoon trading. Chinese markets remained close. The MSCI Asia Pacific index was 0.1% higher at […]</p>

Asian stocks were mostly higher although by modest amounts in afternoon trading. Chinese markets remained close. The MSCI Asia Pacific index was 0.1% higher at noon in Tokyo.

As anticipated the latest set of meetings minutes from the Bank of Japan suggested currency intervention. The Japanese Yen declined initially but regained ground shortly afterwards.

The US dollar was last trading at 76.93 against the Yen. Japan’s Prime Minster said he also expects the central bank to take bold policy actions to address the currency appreciation.

In other currencies, the Australian dollar continued its rise, last trading at 1.061 against the US dollar while the Euro fell slightly below 1.31 against the US dollar as discussions over a Greek debt swap deal continue.

Sources said the talks made some progress yesterday, according to the Institute of International Finance, which is the body representing creditors in the negotiations.

In commodities, both gold and copper managed to consolidate their recent gains while silver slipped slightly.

In regional corporate news, Honda’s President Takanobu Ito said he expects the company’s earnings to climb to their highest levels in five years despite the supply disruptions facing car makers this year. Ito said operating earnings in the year ending March next year are due to recover to levels pre the collapse of Lehman Brothers in September 2008. The comments on face value seem to exceed consensus market expectations by a large amount.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.