Rising geopolitical tensions in Korea triggered a rebound in the Yen, while most Asian shares were able to move as investors were able to assess the statements made by the National People’s Congress of China, and on behalf of the President of the Federal Reserve, Janet Yellen.
Shares of the Nikkei 225 and Wall Street future have shown setbacks to the Yen rebound in Forex, when Japan became alert level to the highest possible after North Korea caught four ballistic missiles in the nearest waters.
This latest provocation from the Kim Jong-un regime occurs when South Korea and the United States make their annual military drills, these tensions increased much more in North Korea which also made the missile tests during Abe’s state visit to the United States last month.
Asian stocks showed gains in the different Asian markets, with Hong Kong and Shanghai exchanges showing progress. The 10-year US Treasury yielded steady another five straight days on the rise, while gold and oil showed declines.
China’s small capitalization companies and power companies were the first beneficiaries of the current annual legislative meetings in Beijing. Prime Minister Li Keqiang set a growth target for 2017 of about 6.5% or even higher if possible, in a report reiterated the pursuit of a much more neutral monetary policy during this year.
In spite of the fall that was seen in the main index of the Tokyo Stock Exchange, the Nikkei 225, in front of the rebound that the Yen had, the shares of that continent registered much progress in the last Monday session and the Kospi, which is the main indicator of the Seoul Stock Exchange, managed to rise to 0.13%, thus reaching 2,081 points.
The S & P / ASX 200, which is the main indicator of the Australian Stock Exchange, saw a 0.29% advance at the end of last Monday in Sydney, led by ISentia Group Ltd. which also posted a rise of 7.56% after the session ended.
The Japanese currency rebounded against the dollar on the Forex after Janet Yellen, the former US Federal Reserve chairwoman, joined to the statements of Central Bank officers who suggested that the growth is still lined up to guarantee higher interest rates.
Expectations that the Fed will increase the different interest rates this month has increased and the bond markets indicate that more than 80% probability of a rate hike during March, after knowing the monthly employment report last Friday, and the different readings about inflation. The USD-JPY registered a 0.24% drawback at the Asian session closure last Monday.