Mixed trading expected in Asia as Greece takes steps to resolve financial crisis

<p>Asian stocks are expecting to open mixed today with slightly negative leads from U.S. markets late last week possibly offset by positive news around the […]</p>

Asian stocks are expecting to open mixed today with slightly negative leads from U.S. markets late last week possibly offset by positive news around the European debt situation. 

Greek Prime Minister George Papandreou has reportedly agreed to step down as premier to allow the creation of a national unity government that will secure international financing for the country and avert a default. There will be more twists and turns in this Greek saga but for now it seems like a plan is in place to sure up financing before next month’s crucial deadlines. 

The EUR/USD remains above 1.38 on the news, not as strong as some would have hoped for, particularly given the sluggish U.S. jobs numbers out on Friday which did see a fall in the unemployment rate to 9% but lower overall job additions. 

Elsewhere in the region, most of the talk around Japan over the past few weeks by global markets has centered on currency controls. There is no doubt this firm move by Japanese authorities to contain currency appreciation comes as pressure from key multinational export giants grows. Today we note something different. Japan last week approved plans to send 200 ground self defense forces to South Sudan in January, with more than 200 to be sent later, as part of a U.N. national building mission. 

The move may however do more with geopolitics than peace keeping. It seems like Japan, already under pressure to shore up energy security post Fukushima, is potentially signaling a greater role in oil rich South Sudan. 

This could see Japan further expanding its investment in Africa, countering an already proactive China policy in the continent. Not an immediate investment theme, but something worth keeping an eye on for those trading energy markets or individual energy securities.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.