Yen Weakens, The Nikkei Soars

The markets opened with strong reactions to the disappointing US jobs data release on Friday and to the new stimulus measures in Japan. The reaction to these aggressive measures has clearly gone down well with market players as the Yen continues to weaken. It’s now at its weakest level since 2008. The new governor of the Bank of Japan Haruhiko Kuroda has been praised for his insight into the global markets reaction to his policy.

An announcement from the Prime Minister of Portugal, Pedro Passos Coelho who has stressed that the country will have to cut its spending which will form part of the bailout package that was received in 2011. The constitutional court in Portugal on Friday rules out this years budget which would include tax hikes. This would have made up for the 1.4 billion euro shortfall.

An announcement from the Prime Minister of Portugal, Pedro Passos Coelho who has stressed that the country will have to cut its spending which will form part of the bailout package that was received in 2011. The constitutional court in Portugal on Friday rules out this years budget which would include tax hikes. This would have made up for the 1.4 billion euro shortfall.

Stocks

The Nikkei 225 in Japan gained 2.51 per cent in overnight trading. This is the indexes highest point since 2008. The Shanghai Composite which dropped 1.72 per cent, didn’t do so well as talk of bird flu damaged the Chinese stocks. The Hong Kong markets also suffered from bird flu talk with the Hang Seng losing 0.24 per cent. Tensions continue to mount in Korea which affected the South Korean Kospi by shedding 0.18 per cent.

Forex

While the Yen is weakened the USD/JPY pair continue their flight with a 1.00per cent gain in overnight trading. The JPY lost over 3 per cent against the dollar towards the end of last week after BOJ stimulus measure announcements. Other than that little movement in the currency markets. The USD was slightly up against its major counterparts, with some recovery from last weeks’ losses. The USDX which is the dollar index that measures the USD against 6 other majors gained 0.21 per cent.

Commodities

The stronger dollar didn’t have an effect on weakening the commodities as is usual as most commodities gained. Silver was the exception, it lost 0.08 per cent on the back of profit taking. Meanwhile gold added 0.07 per cent and Crude oil climbed 0.19 per cent as investors bought these safe haven assets at nice prices. Natural gas continues its rise with 0.21 per cent gain following bad weather reported in the US.

Today - What to watch?

Ben Bernanke Chairman of the Federal reserve will be speaking later today which usually affects the USD. Not many economic events today although markets will continue to react to last weeks jobs data and the news from Portugal.