Asia cheers commodity rebound, Nikkei drops on firmer yen

By FXStreet FXStreet – Most stocks markets in Asia rebounded from the previous sell-off as the oil prices recovered sharply underpinned by broad based US dollar slump and thus, lifted sentiment across the financial markets. However, the Japanese stocks bucked the trend and came under renewed selling pressure this Thursday.

USD sell-off boosts sentiment

The Japanese benchmark index, the Nikkei 225 slips -0.67% to 17,080 points as the overnight rise in the yen amid US dollar sell-off globally hit the exporters’ stocks badly and weighed on the index. USD/JPY skid to fresh two-month lows to 117 handle in the overnight trades and now attempts minor recovery near 118 levels. The greenback slump across the board as markets appear to lose faith in further rate hikes stance by the Fed as the US economic recovery continues to lose steam.

On the other, the Australian markets saw a relief rally on the back of commodities’ rebound, with the ASX 200 index rallying +1.43% to trade at 4,952. Metals and mining stocks benefited the most, while gold producers were also offered some relief after the bullion rose to three-month highs above $ 1140.

The Chinese equities also joined the global rally amid ongoing liquidity injections and stable …read more

Source:: FX Street