Japanese stocks fluctuated, on course for a second straight weekly advance, as investors weighed what higher US interest rates would mean for the global economy and assessed the impact from a weaker yen and lower commodity prices.
The Topix index rose 0.1% to 1,338.44 as of 9.45am in Tokyo, swinging from a 0.5% loss. The index is headed for a weekly advance of 1.4%. The Nikkei 225 Stock Average added 0.1% to 16,662.91. The yen traded at 110.05 per dollar, near a three-week low it hit on Thursday. US stocks fell to the lowest close in seven weeks amid concern that a Federal Reserve interest-rate increase as early as next month could further burden a struggling global economy.
“A stronger dollar means we’ll see money leaving the emerging markets, cheaper oil, concerns creep up again in China and the credit markets, and overall could lead to more confusion in global markets,” Juichi Wako, a senior strategist at Nomura Holdings Inc in Tokyo, said by phone. “But the dollar-yen is back to the 109 to 110 level, and this will be supportive for Japanese stocks. In the end, we’ll just have to wait for further economic data” out of the US.
The Fed’s hawkish commentary in meeting minutes released Wednesday has bolstered the dollar against the yen, but sent commodity prices plunging, pressuring energy shares. Two Fed presidents on Thursday said the central bank is moving closer to raising rates at one of its next two meetings and the fact financial markets are reacting to this possibility is welcome news.
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The Topix index rose 0.1% to 1,338.44 as of 9.45am in Tokyo, swinging from a 0.5% loss. The index is headed for a weekly advance of 1.4%. The Nikkei 225 Stock Average added 0.1% to 16,662.91. The yen traded at 110.05 per dollar, near a three-week low it hit on Thursday. US stocks fell to the lowest close in seven weeks amid concern that a Federal Reserve interest-rate increase as early as next month could further burden a struggling global economy.
“A stronger dollar means we’ll see money leaving the emerging markets, cheaper oil, concerns creep up again in China and the credit markets, and overall could lead to more confusion in global markets,” Juichi Wako, a senior strategist at Nomura Holdings Inc in Tokyo, said by phone. “But the dollar-yen is back to the 109 to 110 level, and this will be supportive for Japanese stocks. In the end, we’ll just have to wait for further economic data” out of the US.
The Fed’s hawkish commentary in meeting minutes released Wednesday has bolstered the dollar against the yen, but sent commodity prices plunging, pressuring energy shares. Two Fed presidents on Thursday said the central bank is moving closer to raising rates at one of its next two meetings and the fact financial markets are reacting to this possibility is welcome news.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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