Strong Japan Export Data Pushes Nikkei Up

There was great volatility during the Asian session even as investors remained on the sidelines ahead of the conclusion of the Fed’s 2 day meeting, and especially Ben Bernanke’s testimony. Another trigger could have been the bullish Japan export data.

In Asia, stocks were broadly higher. The Nikkei 225 in Japan gained almost 2 per cent on the Japanese export figures which were up 10.1 per cent on last year. It is apparent that with such a successful jump in export numbers in just a year, Shinzo Abe’s monetary policy is actually working. In spite of the current trade deficit of JPY993.9 billion, shipments have increased in areas such as the U.S. – gained 16.3 per cent and to China – 8.3 per cent.

Stocks
You would find it hard to believe traders were remaining cautious by looking at the Nikkei 225, which gained a massive 1.98 per cent on the exports data. In Australia the ASX 200 finished up 1 percent, bolstered by mining corporations. Most of the other Asian indexes were down ahead of the Fed meeting.

Forex
The dollar declined slightly against its pairs, as traders moved away from USD positions in the uncertainty of the outcome of today’s meeting. The USD was 0.010 per cent down against the EUR, 0.05 per cent against the GBP, 0.04 against the AUD and 0.20 per cent lower against the YEN.

Commodities
While the USD was down, gold was up by 0.06 per cent. Investors locked in profits on the Silver pushing it down 0.23 per cent. Crude oil continued rising on Middle Eastern conflicts and supply data, which saw the price moving nearer to the $100 a barrel mark.

What to watch today:
European index futures suggest higher market open prices in Europe, although most investors will sit it out until the Fed meeting conclusion. Ben Bernanke’s statements will move global markets , no matter what he says. Minutes for the U.K.’s monetary policy will be published today, and the German ten-year debt auction is scheudles as well.