7 Jun 2013
Flash: Yen strength weighs on sentiment overnight - Deutsche Bank
FXstreet.com (Barcelona) - Jim Reid of Deutsche Bank notes that in overnight markets, the Nikkei (-0.7%) is once again leading Asian equities lower as yesterday’s yen strength weighs on sentiment.
He begins by commenting, “As we type, the Nikkei is now 18% down from its May peak, just a few points away from bear market territory. In overnight trading, the yen is a further 0.8% stronger with the move exacerbated on comments from Finance Minister Taro Aso that Japan will not intervene soon to halt the appreciation of the yen.” Further, he notes that Aso also commented that the government is not considering a corporate tax cut for the sake of stock prices which is putting a dampener on sentiment in Japanese equities.
He begins by commenting, “As we type, the Nikkei is now 18% down from its May peak, just a few points away from bear market territory. In overnight trading, the yen is a further 0.8% stronger with the move exacerbated on comments from Finance Minister Taro Aso that Japan will not intervene soon to halt the appreciation of the yen.” Further, he notes that Aso also commented that the government is not considering a corporate tax cut for the sake of stock prices which is putting a dampener on sentiment in Japanese equities.