Japanese Yen Strengthens Against Dollar, Nikkei 225 Falls
At the beginning of Friday, the Japanese yen suddenly strengthened against the dollar after the release of inflation data in the US, causing analysts and traders to speculate on the potential impact.
The Japanese stock index Nikkei 225 broke its three-day streak of gains and fell by over 2% after reaching record highs in the previous session, according to CNBC.
Japanese Yen Weakens Against US Dollar
There has been a possible intervention by the country’s Ministry of Finance. Around 12:00 Tokyo time, the Japanese currency was trading at 158.55 to the US dollar, after closing at around 161.52 at the end of Thursday’s trading session. Later on Friday, the yen weakened again to a level of 159.21 per dollar.
Japanese Deputy Minister of Finance Discusses Currency Market
Japanese Deputy Minister of Finance for International Affairs Masato Kanda stated that authorities in the Land of the Rising Sun will take action if necessary in the currency market. Reuters also reported that Kanda mentioned that
Last movements in the currency market
The recent movements of the yen have been somewhat fast, but he has refused to comment on whether authorities have intervened in its dynamics.
Stock market update
The Nikkei fell by 2.45% and closed at 41,190.68 points, while the broader Topix index declined by 1.1% and ended the trading session at 2,894.56 points.
The South Korean Kospi index lagged behind by 1.18% to 2,857 points, while the small-cap company gauge Kosdaq dropped by 0.24%, finishing at 850.37 points.
On the other hand, the Hang Seng index in Hong Kong advanced by 2.7%, while the CSI 300 index in mainland China rose.
China’s Export Data Exceeds Expectations
China’s stock market experienced a decrease of 0.12% and ended at a level of 3472.4 points.
Reasons for the Decrease
The decrease occurred as China’s export data surpassed expectations. It grew by 8.6% on an annual basis in June, compared to the forecasted 8% growth from a Reuters survey of economists. This is also higher than the reported rate of 7.6% in May. However, imports decreased by 2.3% compared to June last year, while expectations were for an increase of 2.8%.
China’s Trade Surplus in Dollars
China’s trade surplus denominated in dollars has increased
Global Stock Markets Update
The global stock markets experienced a mixed day of trading, with losses seen in some countries and gains in others. The overall trend was influenced by a variety of factors, including economic data and corporate earnings.
Asia-Pacific Markets
In Asia, the markets were mostly down, with Taiwan’s Taiex index falling nearly 2%. This drop was driven by declines in shares of Taiwan Semiconductor Manufacturing Company and Foxconn. Meanwhile, Australia’s S&P/ASX 200 index rose by 0.8%, reaching a new record high at the end of the trading session.
United States Markets
On Thursday, US markets also saw losses, despite news that inflation in the country had reached a 13-year high in June. The S&P 500 and Dow Jones Industrial Average both closed lower, as investors reacted to the latest economic data and earnings reports.
The Federal Reserve may reduce interest rates in the near future
Over the past three years, the level of inflation has remained low, giving the Federal Reserve the opportunity to potentially lower interest rates in the foreseeable future.
The Consumer Price Index has increased by 3% on an annual basis, slightly lower than the 3.3% in May.
Core inflation, which excludes volatile food and energy prices, has accelerated to 0.1% on a monthly basis and 3.3% compared to a year earlier, compared to corresponding forecasts of 0.2% and 3.4%.
In the USA, the broad market indicator S&P 500 retreated from its record highs and dropped by 0.88%. The technological sector index ?
Stock market update
The Nasdaq Composite, which also reached record highs earlier in the session, fell by 1.95%. The Dow Jones blue-chip index added 0.08%.
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