Dollar drops, the Yen and Euro rose, the Aussie added 0.1 percent: Brokers review 

emerging currencies
  • Dollar drops; Aussie extends advance after base-metal surge

  • Fed minutes show officials concerned about low inflation

Most Asian stocks rose, led by technology shares after stellar earnings at Internet giant Tencent Holdings Ltd. The yen climbed and the dollar extended declines after Federal Reserve meeting minutes reduced the odds of another U.S. interest rate increase this year.

Shares in Japan and Australia swung between gains and losses, while they advanced in South Korea. The Australian dollar added to an advance seen in the wake of a rally in base-metal prices that propelled zinc through $3,000. Australian government bond yields tracked a retreat in U.S. yields after the latest Fed minutes showed debate among policy makers about whether higher rates are need given inflation remains benign. The swaps market sees a reduced chance for a December U.S. interest-rate hike.

The tumult that swept markets in the wake of heightened tensions between the U.S. and North Korea last week has eased, bringing down gauges of equity and bond volatility and repairing most of the damage done to stock markets. Investors continue to keep an eye on Washington where President Donald Trump disbanded two high-profile business advisory councils following the fallout from his response to the weekend violence in Virginia.

Attention will now turn to the European Central Bank, which is due to release minutes of its last policy meeting on Thursday, amid signs the euro-area economy gathered pace in the second quarter. Policy makers have signaled that they are getting closer to phasing out quantitative easing. Meanwhile, Reuters reported that ECB President Mario Draghi won’t deliver a fresh policy message at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming later this month.

In economic news out of Asia, Australian employers added 27,900 jobs in July from June, beating economists’ forecasts of a 20,000 gain. Japan posted a trade surplus for a second consecutive month in July as exports continued to grow, while imports surged again as domestic demand continues to recover.

Earnings at China’s Internet giants will stay in focus. Tencent posted its fastest revenue growth in seven years and record profit that surpassed estimates by 35 percent, sending its U.S.-traded shares up more than 6 percent. Alibaba Group Holding Ltd.’s up next, set to report first-quarter results before the start of New York equity trading on Thursday.

Here are the main moves in markets:


  • The MSCI Asia Pacific Index added 0.6 percent with a subindex of technology stocks up 1.3 percent.
  • Japan’s Topix index swung between gains and losses. Australia’s S&P/ASX 200 Index was little changed and South Korea’s Kospi index climbed 0.5 percent. In Hong Kong, the Hang Seng Index was little changed even as Tencent jumped 3.7 percent.
  • Futures on the S&P 500 Index slipped 0.1 percent as of 12:33 p.m. in Tokyo. The underlying gauge finished up 0.1 percent, down from its session high.
  • The MSCI All-Country World Index increased 0.3 percent on Wednesday.


  • The Bloomberg Dollar Spot Index fell 0.1 percent, extending the 0.4 percent slide on Wednesday.
  • The yen rose 0.3 percent to 109.91 per dollar, extending Wednesday’s 0.4 percent advance.
  • The Aussie added 0.1 percent to 79.34 U.S. cents, pulling back from the session’s high
    after full-time employment dropped in July. The currency surged 1.3 percent after the Fed minutes sent the U.S. dollar lower.
  • The euro rose 0.1 percent to $1.1776, adding to a 0.3 percent gain on Wednesday.


  • The yield on 10-year Treasuries was at 2.23 percent after sliding five basis points overnight.
  • Australian government notes with a similar maturity saw yields slip three basis points to 2.64 percent.


  • West Texas Intermediate crude added 0.3 percent to $46.91 a barrel, after falling 1.6 percent on Wednesday.
  • Gold increased 0.3 percent to $1,286.98 an ounce after rising 0.9 percent Wednesday.
  • Metals extended a rally spurred by Chinese demand and tightening supplies. Zinc was up 0.3 percent to $3,128.50 a ton after rising 5.4 percent on Wednesday. Copper rose 0.2 percent after jumping 2.4 percent on Wednesday.

Source: Bloomberg – Asian Tech Stocks Rally; Yen Gains on Fed Minutes: Markets Wrap

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