TOKYO (AP) – World shares were trading mixed yesterday as investors awaited a flood of global earnings reports, including updates from United States (US) tech companies known as the ‘Magnificent Seven’.
France’s CAC 40 lost 0.3 per cent in early trading to 8,067.62, while Germany’s DAX dipped 0.4 per cent to 18,008.84. Britain’s FTSE 100 rose 0.7 per cent to 8,098.24. US shares were set to drift lower with the Dow future down 0.3 per cent at 38,577.00.
The S&P 500 future declined 0.5 per cent to 5,081.25.
Japan’s benchmark Nikkei 225 slid 2.2 per cent to 37,628.48. South Korea’s Kospi dropped 1.8 per cent to 2,628.62. But Hong Kong’s Hang Seng gained 0.5 per cent to 17,284.54, while the Shanghai Composite rose 0.3 per cent to 3,052.90.
Markets were closed in Australia for a national holiday, Anzac Day.
Attention is also turning to the Bank of Japan (BOJ), whose two-day monetary policy meeting started yesterday.
“For the record, heading into tomorrow’s policy decision, exceptional Japanese yen weakness is the agitated elephant in the room for the BOJ,” Tan Jing Yi of Mizuho Bank said in a commentary.
In currency trading, the US dollar rose to JPY155.64 from JPY155.31.
The euro cost USD1.0730, up from USD1.0697.
The yen has been trading at 155 yen-levels lately, its lowest level in 34 years. That helps Japanese exporters by raising the value of their overseas earnings, but it also raises the price of imports.
Speculation has been growing Japan may intervene to prop up the yen. But opinion is divided if and when that might happen.
Global head of research at ING Economics Chris Turner, said the dollar’s trading above JPY155 was at a level many had expected to trigger an intervention in the market, but conditions weren’t sufficient.
“The sufficiency has to come from market conditions and one can argue we are not there yet,” Turner said, pointing to recent trading volatility.
