Japanese Stocks Take Another Hit on Yen Gains
September 14 2016 - 11:00PM
Dow Jones News
Asian stocks were largely treading water Thursday, as investors
stayed focused on key monetary policy meetings next week, but a
firmer yen pressured Japanese stocks.
The Nikkei Stock Average slid 1% in morning trade, with its
week-to-date losses extending to 3.1%. The S&P/ASX 200 edged
0.1% lower and Hang Seng futures slipped 0.1%. Elsewhere, South
Korea, China and Taiwan were closed for a public holiday.
"There's a holding pattern in the market today," said Chris
Weston, a market analyst at IG Market Ltd. "We're just really
trying to take our cues from what happens in the States at the
moment."
The U.S. Federal Reserve will kick off its two-day meeting on
Tuesday, during which central bankers will vote on whether to raise
interest rates. Higher rates would typically result in money
flowing out of emerging markets.
The yen appreciated 0.33% against the dollar, on bets the Fed is
less likely to lift interest rates in coming months. Japanese
automakers took a hit as their exports grew more expensive, with
Mitsubishi Motors Corp. last down 3.2%, Honda Motor Co. Ltd.
sliding 2.7% and Nissan Motor Co. Ltd. off 2.6%.
Nevertheless, the dollar-yen currency pair is expected to remain
directionless, with many investors sitting on the sidelines ahead
of monetary-policy meetings in the U.S. and Japan next week, said
Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank.
Going forward, investors will be keeping a close eye on U.S.
retail sales for August later Thursday, which could also affect the
Fed's willingness to move rates.
Hiroyuki Kachi contributed to this article.
Write to Ese Erheriene at ese.erheriene@wsj.com
(END) Dow Jones Newswires
September 14, 2016 22:45 ET (02:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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