Yen rattled by Japan PM’s ’unseemly’ rate comments

GLOBAL-MARKETS/VIEW-ASIA (GRAPHIC, PIX):MORNING BID ASIA-Yen rattled by Japan PM's 'unseemly' rate comments

Reuters
Published3 Oct 2024, 03:17 AM IST
Yen rattled by Japan PM's 'unseemly' rate comments
Yen rattled by Japan PM’s ’unseemly’ rate comments

By Jamie McGeever

Oct 3 - A look at the day ahead in Asian markets.

Japanese markets, particularly the foreign exchanges, continue to digest the rather blunt comments on monetary policy from new prime minister Shigeru Ishiba after he met with Bank of Japan governor Kazuo Ueda on Wednesday.

"I do not believe that we are in an environment that would require us to raise interest rates further," Ishiba said, sparking a huge wave of yen selling. The yen shed almost 2% against the dollar on Wednesday, its biggest fall since February last year. Excluding the pandemic-related volatility of March 2020, it was one of the steepest declines in over a decade.

Meetings between Japan's prime minister and central bank governor are not unusual, but this one came only days after Ishiba took office. His comments were unusually direct too - "somewhat unseemly," according to Washington-based economist Phil Suttle. Analysts at JP Morgan reckon the Ishiba administration will adopt a "market-friendly" policy stance until next summer when the upper house election is scheduled, which should soothe market concerns about growth. The yen's plunge reflects how extreme market positioning has become. U.S. futures market data show hedge funds are holding their biggest 'long' yen position since 2016 and one of their largest ever.

Asahi Noguchi, a dovish BOJ board member who dissented against the central bank's rate hike in July, on Thursday delivers a speech and holds a media conference, where he is likely to be asked about Ishiba's comments.

Elsewhere in Asia, Thailand's finance minister Pichai Chunhavajira and central bank chief Sethaput Suthiwartnarueput speak at a central bank event on Thursday.

Asia's economic calendar sees the release of purchasing managers index data from Australia and Singapore, and the latest international trade figures from Australia. The dollar's rally against the yen and U.S. economic data on Wednesday helped lift the greenback to a three-week high against a basket of currencies and register its third daily rise of around 0.5%. Escalating tensions between Iran and Israel continue to sustain safe-haven demand for the dollar and the rebound in oil prices. Brent crude rose above $76 a barrel for the first time in a month, but only ended the day up around 1%. Investors will also be assessing news that France, Greece, Italy and Poland will vote on Friday in favor of hefty tariffs of up to 45% on imports of electric vehicles made in China. That could push through the European Union's highest profile trade measures, risking potential retaliation from Beijing.

How will Germany vote? Finance Minister Christian Lindner said the country must oppose the EU proposal, adding: "A trade war with China would do us more harm than good for a key European industry and a crucial sector in Germany."

Here are key developments that could provide more direction to Asian markets on Thursday:

- Australia trade

- Japan, Australia, Singapore PMIs

- Hong Kong retail sales

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:3 Oct 2024, 03:17 AM IST
Business NewsNewsWorldYen rattled by Japan PM’s ’unseemly’ rate comments

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    139.25
    03:59 PM | 13 NOV 2024
    -4.9 (-3.4%)

    Bharat Electronics share price

    281.45
    03:50 PM | 13 NOV 2024
    -8.8 (-3.03%)

    Tata Power share price

    399.05
    03:59 PM | 13 NOV 2024
    -15.2 (-3.67%)

    Tata Motors share price

    786.40
    03:59 PM | 13 NOV 2024
    1.45 (0.18%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Suzlon Energy share price

    54.08
    03:59 PM | 13 NOV 2024
    -5.31 (-8.94%)

    Rattanindia Enterprises share price

    62.59
    03:58 PM | 13 NOV 2024
    -5.36 (-7.89%)

    Gujarat Narmada Valley Fertilisers & Chemicals share price

    545.95
    03:44 PM | 13 NOV 2024
    -43.85 (-7.43%)

    Motilal Oswal Financial Services share price

    898.15
    03:58 PM | 13 NOV 2024
    -70.5 (-7.28%)
    More from Top Losers

    KNR Constructions share price

    307.80
    03:58 PM | 13 NOV 2024
    23.65 (8.32%)

    Suven Pharmaceuticals share price

    1,259.00
    03:29 PM | 13 NOV 2024
    55.25 (4.59%)

    Piramal Pharma share price

    259.70
    03:52 PM | 13 NOV 2024
    9.15 (3.65%)

    Medplus Health Services share price

    699.50
    03:29 PM | 13 NOV 2024
    23.85 (3.53%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      76,865.00-440.00
      Chennai
      76,871.00-440.00
      Delhi
      77,023.00-440.00
      Kolkata
      76,875.00-440.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      103.02/L0.10
      Chennai
      100.90/L0.10
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts