Yen Advances Amid Rising Risk Aversion
November 26 2015 - 9:45PM
RTTF2
The Japanese yen strengthened against its major rivals in late
Asian deals on Friday amid rising risk aversion, weighed by a slump
in Chinese shares, after data showed industrial companies' earnings
in China fell for the fifth straight month, and the the country's
securities regulator ordered investigations into two major Chinese
brokerages.
China Securities Regulatory Commission ordered urged domestic
brokerages to cease financing clients' stocks purchases through
over-the-counter swap contracts, in order to lessen leveraged
financing risk in its stock markets after the summer stock
rout.
Figures from the National Bureau of Statistics showed that
profits earned by Chinese industrial enterprises decreased for the
fifth consecutive month in October.
Industrial profits fell notably by 4.6 percent year-over-year in
October, much faster than the 0.1 percent slight decrease in
September.
Rising tensions between Russia and Turkey also dampened
sentiment. While Russia announced plans to impose a slew of
economic sanctions against Turkey, the President of Turkey has
refused to apologize for the jet downing and vowed to shoot down
any other Russian fighter jet if it entered his country's airspace.
The U.S. has urged both countries to "talk and de-escalate" the
situation.
In economic front, data from the Ministry of Internal Affairs
and Communications showed that Japan's consumer prices increased as
expected in October.
The overall consumer price index climbed 0.3 percent
year-over-year in October, in line with expectations.
The yen was higher against most major currencies on Thursday. It
rose percent 0.29 percent against the pound, and 0.25 percent each
against the euro and the franc.
In late Asian trading now, the yen advanced to a 3-day high of
88.28 against the aussie, 2-day highs of 80.31 against the kiwi,
91.95 against the loonie, 184.60 against the pound and 122.40
against the greenback, from its early lows of 88.73, 80.69, 92.28,
185.32 and 122.73, respectively. If the yen extends rise, it may
find resistance around 86.00 against the aussie, 78.00 against the
kiwi, 90.00 against the loonie, 182.00 against the pound and 120.00
against the greenback.
The yen came off from its prior lows of 130.15 against the euro
and 119.86 against the franc, trading at 129.99 and 119.59,
respectively. The yen is seen finding resistance around 128.00
against the euro and 118.00 against the franc.
Looking ahead, U.K. preliminary GDP data for the third quarter
and Eurozone economic confidence index for November are due in the
European session.
At 8:30 am ET, Canada industrial product price index for October
is set for release.
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