Asian stocks may push higher; Australian dollar keeps rising

<p>Asian stocks are set to open mildly higher today despite negative offshore leads. Stocks fell after the Dow Jones Industrial Average hit its highest level […]</p>

Asian stocks are set to open mildly higher today despite negative offshore leads. Stocks fell after the Dow Jones Industrial Average hit its highest level since 2008.

Banks were the largest drag on the S&P500 overnight as investors revised earnings estimates based on the US Federal Reserve maintaining its record low rates into 2014.

That news continued to send risk assets higher elsewhere, with the Australian dollar rising above 1.06 US cents and the Euro up above 1.31 against the US dollar.

Copper traded just shy of US$2.89/lb, a remarkable bounce when compared to a few months ago when it was looking like testing the US$3/lb level.

Gold last traded at US$1718/oz while silver also rallied above US$33.40/oz.

Asian traders will be eyeing meeting minutes of the Bank of Japan when they are released today. Of key interest will be the willingness and urgency to step in and stop the yen’s appreciation against the dollar. The US dollar last traded at 77.42 against the Japanese yen ahead of the meeting minutes being released – pointing to an expectation of strong comments against further appreciation.

In Japanese corporate news, Nintendo – the largest global maker of video game machines – reported losses more than three times the previous amount as competitors like Apple and Sony put pressure on volumes. The Kyoto based company expects to report a net loss of around US$828m in the year ending May.

 

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