Nikkei extends rally on weaker yen, rest of Asia turn lower

By FXStreet FXStreet (Mumbai) – The positive close on the Wall Street overnight failed to have favourable impact on the Asian markets, as most regional indices snapped previous rally and turned negative.

However, the Japanese stocks extend the previous rally and trades with size-able gains on the back weaker yen, +0.80% at 19,790. The upside in the Nikkei remains capped as markets turn cautious ahead of the FOMC minutes due later today. Meanwhile, USD/JPY trades near three-month highs at 123.45 levels.

The Australian benchmark, the S&P/ASX index opened on a weaker note and keeps losses as the sharp fall in the commodities prices badly hit the resource stocks. In the mining sector, BHP Billiton, Rio Tinto and Fortescue Metals are all lower by more than 2% each after iron ore and copper prices fell overnight. The ASX now drops -0.22% to 5,107.

While the Chinese indices also traded largely subdued as Dec Fed rate hike looks inevitable now and hence the period of easy money could come to an end, negatively impacting the corporate world. Hong Kong’s Hang Seng trades 0.23% lower at 22,199 while China’s Shanghai Composite (SSEC) trades muted around 3,600.
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Source:: FX Street