Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Asian markets respond to potential Federal Reserve decision and Japan's currency intervention

Published Nov 01, 2023 05:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
USD/JPY
+0.17%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TOPX
-0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MIAP0...
-0.72%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/JPY
+0.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JP225
-0.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JGB
-0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Asian stocks and the Japanese yen saw a boost today, as traders anticipate the Federal Reserve's policy decision and respond to potential intervention by Japan's currency chief, Masato Kanda. The MSCI's Asia Pacific Index rose 1%, driven primarily by Japanese stocks and the Topix benchmark. Despite fluctuations in shares in Hong Kong and China due to China's manufacturing contraction, the overall Asian market remained strong.

The Japanese yen also experienced a significant drop, prompting intervention from Japanese authorities including Kanda. This intervention, along with the Bank of Japan's unscheduled bond-purchase operations aimed at limiting yield gains, helped ease losses in Japanese bond futures.

In corporate news, Toyota Motor (NYSE:TM) raised its full-year profit forecast and announced a share buyback. Rie Nishihara of JPMorgan (NYSE:JPM) Securities viewed these moves positively for Japan's financial stocks.

Meanwhile, S&P 500 futures marginally dropped after October's rebound, while Treasury 10-year yields decreased slightly following a rise. Traders, including bond dealers, anticipate another rate hold from the Fed, as suggested by FOMC. They are also focusing on the US government's new borrowing plan. Yves Bonzon of Julius Baer indicated that the Fed is nearing the end of its tightening cycle but has not yet provided nuanced guidance.

Internationally, global attention has shifted to oil demand due to the ongoing Israel-Hamas conflict. Additionally, US consumer confidence dropped to a five-month low in October, employment costs accelerated unexpectedly in Q3, and disappointing earnings from Alphabet (NASDAQ:GOOGL) Inc. and Meta Platforms Inc (NASDAQ:META). weighed on US stocks. Gold was set for its third straight lower close.

On the other hand, concerns over China's economic recovery led to a 0.4% fall in India's Nifty 50 and Sensex indices. Metal stocks dropped nearly 1%, with Jindal Steel & Power facing a significant 7% loss. Analysts flagged issues such as flat volume growth, capex timeline extensions, and a 10% Q2 revenue drop. VK Vijayakumar from Geojit Financial Services highlighted the impact of a spike in U.S. bond yields and the Fed's higher-for-longer rate stance on global stocks, warning that persistent foreign investment sell-offs could further affect domestic equities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Asian markets respond to potential Federal Reserve decision and Japan's currency intervention
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email