Mixed markets in APAC

hat resulted in the Japan’s Nikkei Stock Average trimming an early 0.5% gain back to 0.2%. The Hang Seng opened up 0.7%, but other Asian equities markets started modestly lower, with benchmarks falling between 0.2% and 0.4%.

The dollar set a string of three-year lows this week after U.S. Treasury Secretary Steven Mnuchin said a “weaker dollar is good for trade.” That turned around Thursday when Mr. Trump said during a CNBC interview at the World Economic Forum in Davos, Switzerland, that “the dollar is going to get stronger and stronger, and ultimately I want to see a strong dollar.”

The Wall Street Journal Dollar Index jumped from 82.82 toward 83.58 in U.S. afternoon trading. It was recently back at 83.38, down 0.1% from late New York levels. The dollar fell to ¥108.50 on Thursday, before jumping to ¥109.75; it was at ¥109.60 midmorning in Asia.

A stronger dollar, “even if it is only short-term, sparked people to put on more U.S. risk, and I think that’s going to be the flavor of the day for Asia today,” said Stephen Innes, head of trading in the Asia Pacific at Oanda.

The Wall Street Journal

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes