Asian Markets Snap 4-Day Losing Streak on Wall Street, Gold Boost
Asian markets edge back into the green thanks to the rebound in US markets and gold prices.
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- Yen scales fresh 18-month highs against dollar.
- Gold briefly rises to one-year high as stimulus hopes grow.
- US stocks rebound led by financial stocks.
- Crude oil futures edge lower after hitting 2016 highs on Friday.
Asian stocks snapped a four-day losing streak on Tuesday as an overnight bounce in US shares boosted risk appetite while gold briefly popped to a one-year high on growing expectations of more policy stimulus.
Market attention will be focused on the Australian central bank’s interest rate decision later in the day. Economists don’t expect any change to policy at this meeting so a surprise rate cut would add to concerns about the lack of growth in the global economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.39 percent higher in early trade, rising from a three-week low tested on Monday.
US stocks rose on Monday, rebounding from losses last week, as financials gained with Berkshire Hathaway and dollar weakness eased worries about corporate earnings.
Yen Strengthens at Dollar’s Expense
In currency markets, the dollar nursed sharp losses sustained against other currencies in the previous sessions with a lacklustre reading on growth in the US manufacturing sector weighing on sentiment.
The yen’s near 5 percent gains against the dollar last week after a shock decision by Tokyo to keep monetary policy unchanged capped its best weekly performance since the depths of the global financial crisis in 2008.
In early trading on Tuesday, the yen rose to a fresh 18-month high against the dollar, with the greenback trading at 106.14 yen.
The dollar index, which measures the dollar’s performance against a trade-weighted basket of its peers, is trading at its lowest since January 2015.
Crude oil futures edged lower after hitting 2016 highs on Friday as fears of a global supply glut eased.
Oil futures were broadly steady at $44.76 a barrel in Asian trading after hitting $46.78 a barrel on Friday, an 80 percent rally since their February lows.
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