Asian markets climbed on Thursday as investors took their cue from Wall Street’s rally fuelled by upbeat US jobs figures, while the yen sank on comments from a Japanese central banker hinting at further monetary easing.
The Japanese currency was sitting around six-month lows against the dollar and four-years low against the euro.
Tokyo rallied 1.18 percent by the break as exporters benefited from the softening yen, while Hong Kong added 0.64 percent, Sydney was 0.23 percent higher, Shanghai gained 0.66 percent and Seoul was 0.63 percent higher.
While analysts said US trade had been subdued this week owing to Thursday’s Thanksgiving holiday, investors managed to run up new records in New York.
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Official data showed first-time claims for US unemployment benefits fell 10,000 last week to 316,000.
That overshadowed disappointing durable goods sales, with the Dow ending up 0.15 percent and the S&P 500 adding 0.25 percent — both at record highs.
Also, the tech-heavy Nasdaq rose 0.67 percent to end above 4,000 for the first time since since the end of the dotcom bubble in 2000.
The dollar rose in New York to highs not seen since the end of May after Bank of Japan board member Sayuri Shirai said it “should not hesitate” to take additional easing steps if the economy’s recent revival stalls or inflation refuses to rise.
In morning Tokyo trade the dollar was at 102.07 yen, compared with 102.16 yen in New York Wednesday but well up from the 101.50 yen seen in Asia earlier Wednesday.
“As the market begins to consider the possibility of a Fed taper in December… and further BoJ action likely in the new year, we feel that the current move could be the beginning of the next step change,” foreign-exchange strategists at Credit Suisse in a note to clients.
The yen has tumbled against the dollar this year as the government and BoJ embark on a big-spending policy blitz and monetary easing campaign aimed at stoking economic growth and inflation. However, while the economy saw impressive growth initially there are fears the effects of the spending may be waning.
The euro continued to be supported by news that German Chancellor Angela Merkel had finally agreed a deal to form a coalition government to lead Europe’s biggest economy.
The single currency bought 138.68 yen compared with 138.71 yen in New York, sitting at highs not seen since October 2009. It also fetched $1.3572 and 138.68 yen compared with $1.3576.
On oil markets New York’s main contract, West Texas Intermediate for January delivery, was down five cents at $92.25 in early Asian trading while Brent North Sea crude for January gained 10 cents to $111.41.
Gold fetched $1,238.90 per ounce at 0220 GMT compared with $1,252.73 on Wednesday.
Source: AFP
