Asian Shares Mixed After Dollar Weakens
February 04 2016 - 10:50PM
Dow Jones News
Asian markets began mixed Friday after the U.S. dollar weakened
again overnight, with many countries in the region preparing to
celebrate the Lunar New Year holiday next week.
The U.S. dollar index, which tracks the greenback's strength
against a basket of global currencies, fell 0.8% to the lowest
level in almost four months ahead of U.S. employment data due for
release later Friday. Markets are pricing in lower expectations for
further rate increases from the U.S. Federal Reserve this year,
weakening the dollar and providing a lift to commodities.
"Weak U.S. data has been the trigger for the selling and, in
theory, it will force the Fed out of its new cycle," writes IG
market strategist Evan Lucas.
Hong Kong's equity markets led the region higher in early
trading, with the Hang Seng Index up 1% and the Hang Seng China
Enterprises Index, a gauge of Chinese companies with listings in
the city, up 1.5%.
The Bank of East Asia rose 8.3% in Hong Kong after hedge fund
Elliott Management Corp urged the bank to explore a sale of its
business.
With the Japanese yen rising against the dollar to the strongest
in more than a year, the Nikkei Stock Average sank 1.1% in morning
trading. The dollar last traded at ¥ 116.88.
Mainland Chinese markets barely stirred ahead of next week's
weeklong holiday for Lunar New Year and the release of data on the
country's foreign reserves due Sunday. The Shanghai Composite was
flat, while the smaller Shenzhen market gained 0.1%.
Elsewhere in the region, Korea's Kospi was flat while the
Australian S&P/ASX 200 shed 0.7%.
Crude prices rose in Asian trading hours, with Brent gaining
0.6% to $34.65 a barrel, while gold prices eased off recent gains,
last down 0.2% to $1,155.40.
Write to Gregor Stuart Hunter at gregor.hunter@wsj.com
(END) Dow Jones Newswires
February 04, 2016 22:35 ET (03:35 GMT)
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