Nikkei Jumps on Weaker Yen, Rest of Asia Wobble Post China CPI
Nikkei Jumps on Weaker Yen, Rest of Asia Wobble Post China CPI
Following the release of in-line with expectations Chinese inflation
report, risk sentiment somewhat improved across the Asian markets, with
the Japanese stocks rebounding sharply on yen’s relative weakness. While
the region’s indices outside Japan traded largely subdued on lower oil
and industrial metals’ prices, extending its longest losing streak since
2000.
China CPI m/m came at -0.2% in April, in line with
forecasts of -0.2%. Meanwhile, China's PPI y/y registered at -3.4%,
slightly above expectations of -3.8%. Stabilizing Chinese price
pressures offered some respite to the Asian markets and lifted the
overall sentiment as fears over China slowdown cool-off a bit.
Nikkei rebounds as Yen falls to 2-week lows
Meanwhile, the Japanese benchmark index, the Nikkei 225 bounces
+1.51%, as the USD/JPY pair hits fresh two-week highs near 108.80 and
helps boost the exports-oriented stocks. Australia’s ASX 200 index
advances 0.11% to 5,326 points, with markets still absorbing the Chinese
datasets.
While the Chinese equities continue to waver between
gains and losses after a weak start today, with the benchmark Shanghai
Composite index down -0.34%, the CSI300 index drops -0.17%, while Kong’s
Hang Seng declines -0.32%.
