Asian Shares Mixed as Traders Look to Jackson Hole
August 21 2016 - 11:00PM
Dow Jones News
Asian shares were largely mixed Monday with traders expecting
hawkish commentary from U.S. Federal Reserve officials this week at
its annual conference in Jackson Hole, Wyo.
The Nikkei Stock Average traded 0.2% higher after the yen
slipped against the U.S. dollar in early trade in Asia. Bank of
Japan Gov. Haruhiko Kuroda is expected to speak Tuesday and will
likely expand on comments he made to the Sankei newspaper that the
BOJ has room to cut interest rates.
Australia's S&P/ASX 200 is trading 0.1% lower with Korea's
Kospi trading 0.6% down. Hong Kong's Hang Seng was trading 0.1%
higher.
"Half of the market believes there will be another rate increase
[in the U.S.] either in December or January," said Mitsushige
Akino, chief fund manager at Ichiyoshi Asset Management. But the
prospect for September is uncertain, he said. "That means a higher
yen environment is likely to continue."
Also weighing on the markets were oil prices that traded weaker
in early Asia trade Monday.
Data on Friday showed an increase in the number of active oil
rigs in the U.S. last week, spurring fears that the recent rally in
oil prices attracted more U.S. shale gas producers to return to the
oil patch, according to ANZ.
The strong dollar is also keeping oil prices down, the bank
said.
"The market is likely to remain in a tight range this week with
a lack of data providing little insight into China's industrial
activity," ANZ said.
U.S. crude was trading lower at $48.25 a barrel with Brent also
down to $50.41 a barrel.
Bank Indonesia left interest rates unchanged for the
second-consecutive month Friday, waiting for the previous, recent
easing measures to work on the economy. The country's bonds have
attracted a fair bit of foreign-investor interest because of
attractive yields.
In China, Sheng Songcheng, head of the People's Bank of China's
statistics department, said cutting taxes and increasing the fiscal
deficit would be more effective than lowering interest rates in
bolstering the economy. The comments come weeks after an editorial
in the state-run Xinhua media admonished speculators for betting on
an interest-rate cut by China's central bank.
Business sentiment, manufacturing and industrial production data
are due from China later Monday.
Kosaku Narioka, Jenny Hsu and Grace Zhu contributed to this
article.
Write to Kenan Machado at kenan.machado@wsj.com
(END) Dow Jones Newswires
August 21, 2016 22:45 ET (02:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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