Japan Stocks Fall Pressured by Strong JPY

Japan’s benchmark Nikkei index fell after stocks on Wall Street closed lower and shares in major exporters were hurt by a stronger yen.

The Nikkei 225 ended down 1.3% at 19,046.55, with the yen hitting one-month highs against the dollar.
A stronger yen hurts Japan’s big exporters as it makes their products more expensive to buy overseas.
Among the main carmakers, Honda fell 2.3%, Nissan dropped 1.1% while Toyota was down 0.7%.
Australia’s stock market also closed down despite positive job numbers.

The country’s jobless rate came in at 5.8% in November – down from 5.9% the month before and the lowest reading since early last year.

The Australian Bureau of Statistics also said 71,400 new jobs were created in the month, which was much better than expected. The Australian dollar rose more than 1% against the US dollar on the news.

However, Sydney’s S&P/ASX 200 index closed 0.8% lower at 5,037.7 after being dragged down by the so-called big four banks, which make up some 30% of Australia’s stock market. Among the big four, Westpac shed 2%, while Commonwealth Bank fell 1.7%.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza