Yen 4 Year Low, Asian Stocks Rocket

The YEN dropped to nearly its lowest point in close to 4 years against the USD, while Asian stocks were all up in overnight trading. The commodities were also broadly higher, as traders fled the safety of the USD towards well-priced metals such as gold and silver.

These moves were buoyed by the Japanese Finance Minister Taro Aso comments that the 2 year plan to double the asset buying fell in line with the G-20 meeting agreements set February. Meanwhile, the JPY has been about 20 per cent weaker since November 2012. This shows success in a scheme which was due to weaken the Yen, and make the county’s export prices much more desirable.

Stocks

The Japanese Nikkei 225 soared to its highest closing price in nearly five years. During the session it gained 2 per cent, and then closed at 1.94 per cent up. The biggest mover was Car Manufacturer Nissan whose global sales have made for almost 80 percent of its total sales. The share price raised 3.8 percent off the back of a nicely weakened Yen which is helping to boost exports.

In Australia, the S&P/ASX 200 gained 0.70 per cent in the Asian session before the release of its national budget report later today. The S.Korean Index added 0.96 per cent as tensions calmed down. The only loser in the Asian market was the Shanghai Composite in China, which dropped 0.37 per cent after the devastating earthquake shook the share prices.

Forex

The Yen was down against all of the other currencies it pairs with. The USD/JPY, which is getting closer to the 100 target level so desired by the Bank of Japan, gained 0.27 per cent to 99.80. The AUD held firm against the Greenback with just a 0.04 per cent raise to take it from its six-week low. Meanwhile, the economic outlook for the U.K. is looking dismal, which pushed the GBP down by 0.20 per cent against the EUR. Traders moved away from their USD positions, which put it under some pressure.

Commodities

Precious metals had positive gains as traders moved away from USD, and into commodities. Both gold and silver saw 2 per cent increases. Crude oil crept up by 0.25 per cent boosted by positive market sentiment created from Asian stock rises, but Natural Gas lost 1.57per cent as the weather begins to warm across the United States, and Europe cuts demand.

Today’s Trading

Stocks should continue to move upwards in European trading, while the USD may well come under further pressure. Not much happening on the economic calendar today, although U.S. home sales data due for release later today should help the dollar gain.