As we approach the midpoint of today’s Asian session, positive sentiment prevails as most of the Asian indices are trading with gains. The ASX 200 is currently the best performer, it opened higher and continued to climb to reach a 21 month high, after reopening from a long weekend break due to markets being closed yesterday for Australia Day.
The Nikkei 225 began the session by opening lower, it then proceeded to show bullishness, paring opening losses to trade with gains. The Nikkei 225 was boosted by the telecommunications sector with KDDI being the leader in the sector, after pre-market news that the Co. raised their operating profit and revenue projections for 2012. Nissan has also contributed to the gains of the index following a report that the Co. have agreed with Daimler AG and Ford Motor Co. to jointly develop a fuel cell electric vehicle system in a bid to create the world's first affordable, mass-market fuel cell electric vehicle.
In the FX market, AUD/USD has steadily risen throughout the first-half of the session. The AUD strength was supported by a better than previous business confidence indicator of 3 vs. Prev. -9, which caused an immediate reaction where AUD/USD rose by 10 pips. The JPY also showed early strength with USD/JPY dropping to the 90.40 level. The JPY strength was brief and USD/JPY bounced from its intraday low to trade in slight negative territory.
Looking ahead, India is scheduled to release its reverse repo rate which is expected to be cut and the Reserve Bank of India is due to announce its monetary policy review.
As of 0258GMT:
ASX200 (+1.14%), Nikkei 225 (+0.63%), Shanghai Comp. (-0.04%), Hang Seng (-0.07%), KOSPI (+0.78%)
29 Jan 2013 - 03:01 - Forex - Source: Newswires
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