Japan Stocks Up Post Jackson Hole

Japanese stocks are all set to enjoy their best rise in a month as exporters enjoy a boost due to weaker yen. Investors continue to analze the Federal Reserve commentary from the symposium held during the fourth week of August in Jackson Hole. The country’s Topix benchmark went north 2.1 percent. This is the sharpest advance in a day from July 12. There was a 2.2 percent in the Nikkei 225 as well.

Yen falls

These gains came with the weakening of the Yen by 0.3 percent on August 29. The currency retreated to Yen 102.12 for every dollar. The retreat of 1.3 percent on Friday was the biggest fall from July 11. Janet Yellen, the chairperson of the Federal Reserve, in her keenly anticipated speech at Jackson Hole symposium, offered no definitive hint as when the central bank of the United States could next lift the interest rates. The chairperson, however, continued to be positive concerning the American economy. She also acknowledged that the reason for raising the interest rates have been much stronger.

Stocks of both Japan and US suffered a choppy session on August 26. The dollar continued to be the principal beneficiary, which went up 0.8 percent comparted to a basket of international peers. The dollar index on August 29 remain unchanged at 95.523.

Gold and interest rates

The move of the US dollar was sufficient to see most of the Asian currencies to be weak on August 29.  Gold, in contrast, went down 0.3 percent to touch $1,316.96 per ounce. The yellow metal is extremely sensitive to the interest rates and also tends to move in an inverse relation to the dollar. Gold contines on its seventh successive day of decline. This marks its longest losing streak from May.

The view of the market is that there is a remote chance of a rise in rates in September. It is instead giving a 50 percent credence of an interest rate rise in December. It should be mentioned that according to many in the Jackson Hole gathering, the growth continues to be fragile despite the benign monetary policy in place internationally.

When it came to the regional stock markets, Hang Seng of Hong King dipped 0.4 percent and the Shanghai Composite of mainland China was lowered by 0.1 percent. Shenzhen Composite, the tech focused index increased by 0.3 percent. The S&P/ASX 200 of Australia was also down by 1.1 percent. This is its steepest fall since the beginning of August.

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