Asian stocks rise, yen weakens as investors eye Fed data
Asian stocks rose on Monday, with Taiwan hitting a record high, while the Japanese yen weakened further as investors awaited a key interest rate decision from the US Federal Reserve later this week, Reuters reported.
Regional markets upbeat:
- MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6 per cent, recovering some ground after a 1.5 per cent drop last week.
- Taiwan’s stock market reached a record level up to seven per cent, fuelled by a surge in technology stocks.
- Japan’s Nikkei index edged up 0.5 per cent ahead of inflation data due later in the week.
- China’s blue-chip stocks rose modestly 0.4 per cent, with key economic data expected on Friday.
US futures dip slightly:
- European and US stock futures were mostly flat, with investors cautious ahead of the Fed meeting.
- The S&P 500 and Nasdaq futures dipped slightly, despite strong performance from tech giants like Nvidia.
In currency markets, focus remains on the yen and the potential for Japanese intervention near the 160.00 level. The dollar is currently at 156.78 yen, up 0.9 per cent last week and near its recent peak of 160.245.
Japan is actively addressing the yen’s decline, with G7 finance leaders discussing the issue over the weekend following a rise in bond yields.
Gold prices held steady at $2,342 per ounce, having retreated 3.4 per cent last week from an all-time peak of $2,449.89. Investors closely monitor gold as a safe-haven asset during uncertain times.
Oil prices remained stagnant near four-month lows due to concerns about demand. As the US driving season begins, investors are closely watching whether OPEC+ will discuss new output cuts during their online meeting on June 2.
- Brent crude rose by 20 cents to $82.32 per barrel.
- US crude increased by 27 cents to $77.99 per barrel.
