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Yen eases as recovery concerns leave markets mixed
AFP - Friday, August 13
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Yen eases as recovery concerns leave markets mixed
HONG KONG (AFP) - – The dollar rebounded against the yen Friday after Tokyo leaders made a "verbal intervention" over the Japanese unit's strength as stocks edged higher on bargain hunting after three days of losses.
Prime Minister Naoto Kan on Thursday said the yen's advance was too "rapid" and agreed with his right-hand man and Chief Cabinet Secretary Yoshito Sengoku to closely monitor the issue.
The dollar -- which slumped to a 15-year low of 84.73 on Wednesday -- was changing hands at 86.10 yen in Tokyo morning trade, up from 85.88 yen late Thursday in New York.
The euro fetched 1.2856 dollars, up from 1.2827, while it edged up to 110.66 yen from 110.18.
However, analysts warned that the greenback was not yet out of the woods.
"We are still seeing the effect of the verbal intervention in the market, but I think it is limited," said Hideaki Inoue, chief forex manager at Mitsubishi UFJ Trust and Banking Corp.
"When you look at the market environment in the United States and Europe, the conditions bringing the yen higher still remain, possibly making it rise to the 85-yen level," he said.
On stock markets Tokyo closed 0.44 percent higher, adding 40.87 points to 9,253.46, while Sydney jumped 1.33 percent, or 58.7 points, to 4,459.6.
Hong Kong was up 0.33 percent and Shanghai rose 0.50 percent in the afternoon.
Dealers moved to pick up bargains after three days of heavy losses caused by weak economic data from Europe, the United States and China.
However, they were given a poor lead from Wall Street, where the Dow dropped 0.57 percent after fresh data showed US jobless claims jumped last week to the highest level in about six months.
Initial claims climbed 2,000 to 484,000 in the week to August 7 from the previous week's upwardly revised figure of 482,000. Most economists had expected 465,000 new claims.
The news added to woes caused by figures showing the US trade gap widened sharply in June -- to the highest level in 20 months -- with many fearing that the world's biggest economy would experience a double-dipped recession.
Oil prices rebounded, with New York's main contract, light sweet crude for delivery in September, up 99 cents to 76.73 dollars a barrel in Asian afternoon trade after tumbling 2.28 dollars in US trade Thursday.
London's Brent North Sea crude for delivery in September climbed 74 cents to 76.26 dollars after dropping 2.12 dollars the previous day.
Gold opened at 1,211.50-1,212.50 US dollars an ounce, up from Thursday's closing price of 1,201.00-1,202.00 dollars.
In other markets:
-- Seoul closed 1.42 percent, or 24.49 points, higher at 1,746.24.
-- Taipei rose 0.79 percent, or 61.79 points, to 7,891.58.
HTC rose 1.03 percent to 590.0 Taiwan dollars while Taiwan Semiconductor Manufacturing Company fell 0.17 percent to 60.1.
-- Manila fell 0.39 percent, or 13.50 points, to 3,469.52.
Investment holding firm DMCI Holdings fell 1.5 percent to 20.35 pesos and property developer Ayala Land was down 2.0 percent at 14.88.
-- Wellington rose 0.27 percent, or 8.22 points, to 3,015.13.
Children's clothing retailer Pumpkin Patch added 1.2 percent to 1.75 New Zealand dollars while outdoor clothing retailer Kathmandu rose 1.9 percent to 1.64. But rural services provider PGG Wrightson shed 7.1 percent to 0.52.
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