Euro was flat, Japanese Yen advanced; Stocks put in a mixed performance in Asia 

euro currency

Stocks put in a mixed performance in Asia, while the yen appreciated, as investors gauge the implications of the latest personnel changes in the Trump administration.

Equities in the region started with declines following weaker-than-anticipated U.S. retail sales, then fluctuated, with Tokyo closing little changed after a down session in Sydney. Chinese equities were becalmed amid the continuing annual gathering of the nation’s legislature. Traders continue to mull prospects for U.S. trade protection after incoming White House economic adviser Larry Kudlow signaled support for a strong dollar and took a tough line on China. Treasury yields held near the bottom of the past month’s trading range.

The news on “Kudlow interestingly has not been significantly well-received by the market,” said Jingyi Pan, a market strategist at IG Asia Pte in Singapore. “One reason underpinning this lingering fear may be the new chief economic adviser’s stance on China, which adds to the tension — with Kudlow having targeted the country in his first public remark.”

The lackluster retail sales data provided the last major economic indicator prior to the Federal Reserve’s policy decision next week. While an increase in borrowing costs at the meeting is seen as a done deal, it remains an open question whether U.S. policy makers will lift their expectations for the pace of future increases.

Elsewhere, oil steadied around $61 a barrel as signs of stronger U.S. fuel consumption balanced OPEC forecasting for the first time that new supplies from its rivals will exceed demand growth this year. Bitcoin drifted below $8,000.

Here are some of the key things happening this week:

  • Japan industrial production is out on Friday.
  • Inflation data Thursday is a focal point in the euro area.
  • EU27 government officials discuss the European Union’s Brexit position.

And these are the main moves in markets:

Stocks

  • The Topix index was virtually flat at the end of trading in Tokyo.
  • The Hang Seng Index rose 0.3 percent as of 3:21 p.m. in Hong Kong.
  • Kospi index rose 0.3 percent.
  • Australia’s S&P/ASX 200 Index lost 0.2 percent.
  • Futures on the S&P 500 Index were up 0.2 percent.
  • The MSCI Asia Pacific Index was little changed.

Currencies

  • The Bloomberg Dollar Spot Index fell less than 0.1 percent.
  • The Japanese yen advanced 0.2 percent to 106.06 per dollar.
  • The euro was flat at $1.2371.

Bonds

  • The yield on 10-year Treasuries slipped about one basis point to 2.80 percent.
  • Ten-year German bund yields were steady at 0.593 percent.

Commodities

  • West Texas Intermediate crude was little changed at $61.02 a barrel.
  • Gold rose 0.3 percent to $1,325.25 an ounce.
  • LME copper was down 0.3 percent at $6,968.50 per metric ton.

Source: Bloomberg – Stocks Mixed as Investors Gauge Trump Team Revamp: Markets Wrap

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