Dollar at 2-month highs vs yen on policy divergence

Calvin Saunders
July 12, 2017

The CSI300 index rose 0.5 percent, but the Shanghai Composite Index shed 0.2 percent.

Metcash said that it has appointed former Tesco executive Jeff Adams as its new CEO, succeeding the retiring Ian Morrice.

Kohl's slid 0.6 percent in early trading Tuesday, and Nordstrom lost 0.5 percent.

The major exporters are mostly advancing. In the banking sector, Mitsubishi UFJ Financial is declining 0.4 percent, while Sumitomo Mitsui Financial is adding 0.2 percent.

Japanese government bond (JGB) yields had also tracked the rise in their USA and euro zone counterparts.

Gains were led by blue-chip exporters, with Toyota advancing 1.22 percent to 6,263 yen and its smaller rival Nissan edging up 0.21 percent to 1,154.5 yen. Sony Financial Holdings and JGC Corp. are down nearly 2 percent each.

"Carry trades are back in vogue and that can be seen in the yen's price action this morning but we should see some consolidation before Yellen's testimony this week", said Sue Trinh, head of Asia FX strategy at Royal Bank of Canada in Hong Kong.

With the expectations fueled by increasingly robust-looking global growth, MSCI's 47-country All World share index .MIWD00000PUS was up for a third day running, though it was forced to cling on as Europe's main bourses faltered despite a fresh flurry of M&A activity.

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The economic calendar in the USA on Tuesday includes the Job Openings and Labor Turnover Survey for May at 10 a.m. ET, and Wholesale Trade for May at 10 a.m. Gold also closed higher.

"In the absence of any notable economic data releases, and with investors happy to remain on the sidelines ahead of Janet Yellen's semi-annual testimony before Congress later this week the currency markets have continued to trade tight ranges", traders at HiFX said in a note.

KEEPING SCORE: The Standard & Poor's 500 index fell 1 point, or 0.1 percent, to 2,425 as of 2:23 p.m.

Meanwhile, the major European markets are turning in a mixed performance on the day.

On Monday, financial markets around the world rallied and the US dollar touched a high of two-months versus the yen as the most recent jobs data from the USA gave investors more confidence in the strength of the USA economy.

ENERGY: Benchmark U.S. crude fell 45 cents to $43.95 a barrel in electronic trading on the New York Mercantile Exchange.

Seoul added 0.6 percent, with Taipei more than one percent up and Wellington 0.6 percent higher.

Other reports by MaliBehiribAe

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