Arab Today, arab today europe stocks rally shrug off japanled asia losses
Last Updated : GMT 06:27:20
Arab Today, arab today
Arab Today, arab today

As a surging yen hit exporters

Europe stocks rally, shrug off Japan-led Asia losses

Arab Today, arab today

Arab Today, arab today Europe stocks rally, shrug off Japan-led Asia losses

okyo stocks plunged more than 3% as a surging yen hit exporters on May 2, 2016
Paris - Arab Today

European shares rallied Monday in holiday-thinned trading ahead of key US and eurozone data despite a sharp drop in Tokyo as a surging yen hit exporters.

Frankfurt and Paris pushed slightly higher after ending last week deep in the red as markets eyed possible clouds looming on the global economic horizon and digested a shock decision in Japan.

Tokyo stocks plunged more than three percent leading a sell-off across Asia, also in limited holiday trades, after the Bank of Japan surprised markets by opting Thursday not to unleash fresh stimulus despite signs of faltering growth.

After Friday's public holiday in Japan, the Nikkei closed 3.1 percent lower Monday.

"We expect short-term share market volatility to remain high," Shane Oliver, the Sydney-based head of investment strategy AMP Capital Investors, told Bloomberg News.
"Failure by the BoJ to do more soon risks unwinding all the progress on inflation expectations seen under Abenomics, particularly with the yen breaking to ever higher levels," he added, referring to Prime Minister Shinzo Abe's growth policy blitz.

But in the eurozone, Germany's DAX 30 climbed 0.7 percent, while France's CAC 40 rose 0.4 percent after both rounded off last week heavily lower as a strong jump in eurozone growth was offset by another fall in consumer prices.

London's FTSE 100 was closed for a public holiday Monday.

"Some disappointing earnings and a higher euro versus the US dollar probably led to profit taking in European equities despite a better than expected eurozone Q1 (first-quarter) GDP number," ING Credit Strategy's Quentin Gilletta said in a note to investors.

Despite Paris shares trading higher, a rise in the euro against the dollar was holding investors back, Philippe Cohen, of Barclays Bourse, said.

Investors were also likely keeping an eye on key manufacturing data in the US and eurozone due to be released later.

On Sunday, China released figures showing the country's factory activity eased slightly in April but continued to expand, helped by a recovery in the property market and indicating some level of stability was returning.

- Takata dives - 

The yen has soared against the dollar since the BoJ decision, which came soon after the US Federal Reserve indicated it was keeping its eye on market movements before hiking interest rates again.

And it remains elevated despite Japan Finance Minister Taro Aso trying to talk it down by hinting at possible intervention if its strength continues.
On Saturday he said the rally was "extremely worrying", adding that "speculative moves are seen behind it".

"Tokyo will continue watching the market trends carefully and take actions when necessary," he said.

The greenback bought 106.49 yen Monday, well down from the levels above 111 yen before the BoJ's surprise announcement.

With the yen rallying, Japan's exporters were under pressure as it reduces the value of their overseas profits.

Sony and Fast Retailing each lost more than four percent, while Toyota slipped 3.8 percent.

Troubled car parts maker Takata plunged 9.3 percent after reports in various media said more than 100 million vehicles equipped with air bags made by the company are likely to be subject to global recalls, up from the current 60 million.

The auto parts giant has been hammered by an exploding air bag defect blamed for at least 11 deaths.

The selling in Asia came after US stocks ended Friday deep in the red as a weak consumer spending reading compounded a below-forecast economic growth result and an uninspiring set of corporate reports.

- Key figures at 1025 GMT -

Frankfurt - DAX 30: UP 0.7 percent at 10,113.84 points

Paris - CAC 40: UP 0.4 percent at 4,445.02 points

London - FTSE 100: Closed for public holiday

Tokyo - Nikkei 225: DOWN 3.1 percent at 16,147.38 (close)

Hong Kong - Closed for public holiday

Shanghai - Closed for public holiday

New York - Dow: DOWN 0.3 percent at 17,773.64 (close)

Euro/dollar: UP at $1.1488 from $1.1452 Friday

Dollar/yen: DOWN at 106.49 yen from 106.31 yen

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today europe stocks rally shrug off japanled asia losses Arab Today, arab today europe stocks rally shrug off japanled asia losses

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today europe stocks rally shrug off japanled asia losses Arab Today, arab today europe stocks rally shrug off japanled asia losses

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday