Asia stocks consolidate after touching decade highs, dollar steady -

Asia stocks consolidate after touching decade highs, dollar steady

Credit: channelnewsasia.com

  • Sep 14 2017 02:20About: 3 months ago
  • 10 views

TOKYO: Asian stocks edged down on Thursday, consolidating after touching their highest in a decade, while the dollar held steady before the U.S. inflation report for August is published.

Financial markets will also be on tenterhooks ahead of a run of data from China due at 0200 GMT, including factory output, fixed asset investment and retail sales, that will show the strength of the world's second-biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent after rising to its highest since 2007 the day before.

Japan's Nikkei was effectively flat following its climb to a one-month high on Wednesday.

Wall Street edged up to a record high on Wednesday with gains in consumer discretionary and energy stocks helping offset losses in technology heavyweight Apple Inc .

The dollar index against a basket of six major currencies stood tall, lifted as U.S. Treasury yields climbed to 2-1/2-week highs on an ongoing improvement in broader investor risk sentiment.

The dollar index was at 92.399 after touching 92.530 overnight, its highest since Sept. 5. It had slumped to a 2-1/2-year low of 91.011 on Friday, when Hurricane Irma threatened the continental United States and on North Korea concerns.

Focus returned this week to fundamentals from geopolitical risks and natural disasters, with investors poised for the U.S. consumer price index (CPI) due later in the session and its potential impact on the Federal Reserve's stance on interest rates.

Expectations for the Fed to hike rates again in 2017 have waned as U.S. inflation has proved to be relatively sluggish.

"The dollar would be sold if the CPI turns out to be weak but the main focal point is how the stock market reacts to such an outcome," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

"The U.S. financial sector has benefited from the recent rise in yields. Should yields fall on lackluster CPI data, that could be used as a pretext to sell U.S. stocks which have already hit successive record highs."

The dollar was unchanged at 110.510 yen after setting a one-month high of 110.690 overnight. So far this week it has gained 2.5 percent against its Japanese peer, a currency often sought in times of risk aversion.

The euro was steady at US$1.1890 after losing 0.7 percent the previous day, while sterling was flat at US$1.3211 .

The pound hit a one-year high of US$1.3329 on Wednesday following strong domestic inflation data, with the currency market braced for the closely-watched Bank of England (BoE)policy meeting due later on Thursday.

The BoE must decide on Thursday how forcefully to phrase the prospects of a first interest rate rise in a decade when it weighs up the need to help Britain's Brexit-bound economy against tackling a jump in inflation.

In commodities, crude oil prices dipped slightly after posting a big surge overnight after the International Energy Agency (IEA) said a global surplus of crude was starting to shrink.

Brent crude futures was down 0.3 percent at US$55.00 per barrel after reaching a five-month peak US$55.21 the previous day.

U.S. crude slipped 0.2 percent to US$49.22 per barrel after rallying 2.2 percent overnight.

(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)



Follow Us on Twitter

Asian stocks edged down Thursday consolidating after touching their highest decade while dollar held steady before U.S. inflation report August published.

Related stories with Asia stocks consolidate after touching decade highs, dollar steady

Spieth done with first pitches after three bucket-listers -World News
Spieth done with first pitches after three bucket-listers 3 months ago
LAKE FOREST, Ill. – After crossing another stadium off his first-pitch bucket list, Jordan Spieth is ready to retire his pitching arm. Spieth threw out the honorary first pitch before Tuesday’s game at Wrigley Field between the Chicago Cubs and the Ne
Mexican students, enraged by arrests and killings,  kidnap cops after hijacking buses -World News
Mexican students, enraged by arrests and killings, kidnap cops after hijacking buses 3 months ago
Radical students in southern Mexico hijacked a fuel tanker truck and two buses Wednesday and later kidnapped four police officers to demand the release of about 10 students arrested over the vehicle thefts. The events marked the latest chapter of violence
After floods, 235 districts face drought in country -World News
After floods, 235 districts face drought in country 3 months ago
A majority of the distress districts lie in the hinterland, in a swathe running through Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Vidarbha. UP, Haryana and MP are the hardest hit states, showing rain deficits of 31%, 28% and 25%, respectively.
‘Pharma bro’ Martin Shkreli is jailed, after offering US$5,000 bounty on hair from Hillary Clinton -World News
‘Pharma bro’ Martin Shkreli is jailed, after offering US$5,000 bounty on hair from Hillary Clinton 3 months ago
A judge jailed former pharmaceuticals company CEO Martin Shkreli on Wednesday after finding that he violated his bail on a securities fraud conviction with a social media posting she agreed posed a threat to Hillary Clinton. Defence attorneys had argued a
Elk Grove Man Arrested After Police Find Explosive Devices Inside Home -World News
Elk Grove Man Arrested After Police Find Explosive Devices Inside Home 3 months ago
ELK GROVE — What may have been a domestic dispute caused a scare in an Elk Grove neighborhood Tuesday night. Now, a man is in jail on a variety of charges including possessing explosive devices. The neighborhood was quiet Wednesday, standing in star
After arrest, radio host quits ‘Boomer and Carton’ show -World News
After arrest, radio host quits ‘Boomer and Carton’ show 3 months ago
New York sports radio personality Craig Carton has quit his show on WFAN following his arrest on fraud charges. Carton co-hosted “Boomer and Carton” with former NFL quarterback Boomer Esiason (eh-SY’-uh-suhn). He announced Wednesday he h
James 'Arg' Argent literally DRIBBLES over his food on Celebs Go Dating after saying he's got flirting
James 'Arg' Argent literally DRIBBLES over his food on Celebs Go Dating after saying he's got flirting "down to a tee" 3 months ago
EXCLUSIVE: The TOWIE star reckons he's got away with it ... but it's doubtful
Sound Off: What Tennessee needs to do to beat Florida after snapping 11-game skid last year -World News
Sound Off: What Tennessee needs to do to beat Florida after snapping 11-game skid last year 3 months ago
KNOXVILLE, Tenn. — Tennessee football is off to a 2-0 start heading down to Florida, where it will play the rival Gators in a key SEC East showdown. SEC Country reporters Mike Griffith and Blake Morgan follow Tennessee football daily, and they weighed i
The Grand Tour season 2: Filming in CHAOS after disasters ‘We’re playing catch-up' -World News
The Grand Tour season 2: Filming in CHAOS after disasters ‘We’re playing catch-up' 3 months ago
THE GRAND TOUR is trying to recover lost ground in time for season two's release, following Jeremy Clarkson's major health scare.
Airlines work to restore normal operations after hurricanes -World News
Airlines work to restore normal operations after hurricanes 3 months ago
WASHINGTON — Airline executives say their carriers are gradually restoring normal operations in the wake of the back-to-back hurricanes that hit Texas and Florida. American Airlines CEO Doug Parker told an industry conference in Washington on Wednes
Asia glaciers face massive melt from global warming even if 1.5-degree Paris target is met: study -World News
Asia glaciers face massive melt from global warming even if 1.5-degree Paris target is met: study 3 months ago
Scientists say one-third of the ice stored in Asia’s glaciers will be lost by the end of the century even if the world manages to ...