Asian equity markets have been more eventful today as market participants in Japan return to the markets for the first time this week. The Nikkei 225 has seen substantial gains, rocketing 2.3% at the open, supported by a weaker JPY after the US Treasury's Brainard stated the US supports Japan's efforts to reinvigorate growth and end deflation. There were also comments from Japan’s Amari during yesterday’s session that Japanese stocks will rise through government efforts, suggesting the recent JPY weakness and Nikkei 225 strength are in line with Japan’s desire to increase corporate profits. The ASX 200 has seen minor gains boosted by the Industrials and Telecommunications sectors. Whitehaven Coal has been one of the best performers in the index after opening higher, amid news that Australia’s environment minister gave conditional approvals for proposed Maules Creek and Boggabri coal mines.
USD/JPY has traded in a relatively tight range in the first half of the Asian session; this was following its substantial rise during the US session on the back of Brainard’s comments which imply the US will not be contesting Japan’s current FX policy at the upcoming G20 meeting. AUD/USD bounced off its lows after a slightly better NAB Business Conditions and Business Confidence figures, however it still has far to go to pare yesterday’s significant downtrend.
Looking forward, Japanese Consumer Confidence is scheduled for release at 0500GMT/2300CST, whilst Indian Industrial Production is scheduled for release at 0530GMT/2330CST.
As of 0225GMT:
ASX200 (+0.06%), Nikkei 225 (+2.38%), KOSPI (+0.06%)
Print 02:27, 12 Feb 2013 - Asian News - Source: RANsquawk
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