Top Ad unit 728 × 90

Dollar slips as Trump takes rein, most Asia markets up

https://s.yimg.com/ny/api/res/1.2/fe21Pw0_ZBC325APQriefA--/YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9ODAwO2lsPXBsYW5l/http://media.zenfs.com/en_us/News/afp.com/907521b36d4b80daed2e59bbff58b8ce33022d20.jpgHONG KONG: The dollar retreated against most of its peers Monday (Jan 23), with warnings of wild volatility ahead as Donald Trump began his presidency promising to put America first and hitting out at global trade deals.
While trading floors are ravaged by uncertainty over the tycoon's plans, shares in most Asian markets rose following a positive lead from Wall Street, though Japan's Nikkei tanked as the greenback slipped against the yen.
Trump's inauguration speech Friday continued his campaign rhetoric, saying "every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families".
On Sunday he vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada.
"Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation," Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, told Bloomberg News.
"Shares remain vulnerable to a further correction or consolidation in the next month or so."
But the dollar - which soared in November and December on expectation Trump's big-spending, tax-cutting, deregulation plans would fan inflation - continued to struggle in January.
In afternoon trade Monday it bought 113.40 yen, well down from 114.60 yen Friday and more than 4 per cent down from the highs touched late in December. It was also well down against the euro and pound despite ongoing concerns about Britain's exit from the European Union.
"VOLATILE TIMES"
"I suspect we're entering extremely volatile times for the dollar," Stephen Innes, senior trader at OANDA, said in a note. "There remains a high level of uncertainty about the new administration's dollar policies, especially following President Trump's recent remarks on the strong dollar directed at China."
Trump last week said the greenback was too strong against China's yuan and claimed this was "killing" the US economy.
The stronger yen dragged down exporters on Tokyo's Nikkei, which ended 1.3 per cent lower. Takata collapsed again, diving nearly 18 per cent on fears of a drawn-out bankruptcy restructuring for the airbag maker at the centre of the biggest-ever auto safety recall.
The embattled stock, which has lost more than half its market value in a week, fell by its daily limit, extending a losing streak to a sixth session.
Sydney shed 0.8 per cent but Hong Kong rose 0.1 per cent while Shanghai closed up 0.4 per cent. Seoul was marginally higher with Samsung surging more than 2 per cent as it looked to put its exploding Galaxy Note 7 crisis behind it by announcing the problem was down to a faulty battery.
Singapore added 0.5 per cent. Taipei surged 1 per cent ahead of a week-long Lunar New Year holiday and there were also healthy gains in Manila and Bangkok.
In early European trade London, Paris and Frankfurt each fell 0.7 per cent.
KEY FIGURES AT 0800 GMT
Tokyo - Nikkei 225: DOWN 1.3 per cent at 18,891.03 (close)
Shanghai - Composite: UP 0.4 per cent at 3,136.77 (close)
Hong Kong - Hang Seng: UP 0.1 per cent at 22,898.52 (close)
London - FTSE 100: DOWN 0.7 per cent at 7,151.35
Euro/dollar: UP at US$1.0746 from US$1.0699
Pound/dollar: UP at US$1.2450 from US$1.2368
Dollar/yen: DOWN at 113.40 yen from 114.60 yen
Oil - West Texas Intermediate: DOWN six cents at US$53.16 per barrel
Oil - Brent North Sea: DOWN two cents at US$55.47
New York - Dow: UP 0.5 per cent at 19,827.25 (close)
Dollar slips as Trump takes rein, most Asia markets up Reviewed by Chidinma C Amadi on 3:56 AM Rating: 5

No comments:

Kogonuso © All Rights Reserved!

Contact Form

Name

Email *

Message *

Powered by Blogger.