Global shares mostly dip as yen rises against US dollar
US futures were little changed amid persisting uncertainty over US tariff policies, among other issues
Global shares mostly dip as yen rises against US dollar
Global shares mostly declined on Monday, as in Asia, Japan’s benchmark took a tumble after the yen surged against the US dollar. France’s CAC 40 dipped nearly 0.2 per cent in early trading to 8,127.93, while the German DAX added less than 0.1 per cent to 24,881.34. Britain’s FTSE 100 edged down less than 0.1 per cent to 10,138.76.
US futures were little changed amid persisting uncertainty over US tariff policies, among other issues. The futures for the S&P 500 rose less than 0.1 per cent, while Dow futures were virtually unchanged.
Earlier in the global day in Asia, Japan’s benchmark Nikkei 225 dropped 1.8 per cent to finish at 52,885.25 on the selling of big exporters like Toyota Motor Corp., whose shares fell 4.1 per cent. A weak currency is generally favourable for Japanese exporters because it helps elevate the value of their overseas earnings. In recent months, the dollar has gained against the yen.
It fell sharply in the past few days after officials in both Japan and the US indicated they were prepared to intervene to support the yen. Although finance officials did not directly confirm that such intervention was in the works, they confirmed they were in close coordination with the US on currency fluctuations.
“Intervention chatter did the trick. Since Friday, the yen has staged a sharp rebound on expectations that Japanese authorities — possibly with US coordination — would step in,” said Ipek Ozkardeskaya, a senior analyst at Swissquote. The dollar slipped to 153.88 Japanese yen from 155.01 yen. It had been trading around 158 yen last week.
The euro fell to $1.1851 from $1.1858. Elsewhere in Asia, South Korea’s Kospi dipped 0.8 per cent to 4,949.59. Hong Kong’s Hang Seng inched up less than 0.1 per cent to 26,765.52, after vacillating earlier in the day, while the Shanghai Composite fell nearly 0.1 per cent to 4,132.60. Markets were closed in Australia, New Zealand, India and Indonesia.
Markets are also closely watching earnings reports that are expected in the weeks ahead from various global companies, some of which might show the negative effects of recent US tariff policies. In the latest such development, a threat by US President Donald Trump to impose a 100 per cent tariff on goods from Canada was countered by Canadian Prime Minister Mark Carney.
