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Asia-Pacific market rises as investors pay attention to oil prices and yen depreciation

Singapore — Stocks in the Asia Pacific region rose after oil prices fell overnight. Meanwhile, Bitcoin has skyrocketed above key levels, and the sharp fall in the yen has warned.

Hong Kong’s Hang Seng Index surged 0.91% in the last hour of trading as casinos and tech stocks rose. Among the biggest gains was JD Health, which surged more than 16% after announcing the largest share repurchase on Monday. HK $ 3 billion in 24 months.

However, real estate stocks went against a broader trend as Sunac plunged about 18% and Shimao fell more than 9%. China’s CSI real estate index fell 2% earlier, but fell 1.4% with some losses suppressed.

Sunac announced late Monday that it would postpone its 2021 earnings report and suspend trading from April 1, the day after it announced that it would join the list of Chinese developers who couldn’t make money on time.

Mainland China showed its previous rise with the Shanghai Composite Index down 0.33% to close at 3,203.94 and the Shenzhen Component down 0.46% to 11,895.08.

Japan’s Nikkei Stock Average was up 1.10% to 28,252.42, and Tops was up 0.93% to 1,991.66. Tech stocks rose, Sony rose 1.81%, and SoftBank Group rose 1.89%.

Australia’s S & P / ASX 200 rose 0.7% to 7,464.30 due to rising bank stocks, but some miners and oil stocks fell, going against the trend. South Korea’s Kospi rose 0.42% and closed at 2,741.07.

According to a Reuters study, Australia reported higher-than-expected retail sales in February, up 1.8% from January to A $ 33.1 billion ($ 24.8 billion).

MSCI’s widest non-Japanese Asia Pacific stock index rose 0.66% in the afternoon.

weaker yen

The yen focused on investors after the Bank of Japan offered to buy unlimited 10-year government bonds at 0.25% in the first four days of this week on Monday... The yen fell and remained close to its lowest in six years, so it was finally traded at 123.59 dollars.

The depreciation of the yen triggered comments from Japanese officials on Tuesday, and Finance Minister Shunichi Suzuki said Japan would carefully monitor foreign exchange movements to avoid a “deterioration of the depreciation of the yen,” according to Reuters.

“The Japanese yen is still the main story of the FX rand, and the US dollar / yen has been rising vertically over the last 24 hours,” Rodrigo Catril, senior forex strategist at the National Australia Bank, said in a note on Tuesday. ..

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One of the major factors behind the recent depreciation of the yen is the Bank of Japan’s Yield Curve Control (YCC) policy, which has set the yield on 10-year government bonds (government bonds) at 0.25 despite rising global core bond yields. It is limited to the range of%. Mr Katril explained that the policy required keeping yields on 10-year government bonds at or near zero.

Markets suspected that their commitment to policy was “shaking” amid concerns about rising inflation, Katril said.

This pushed the yen to a seven-year low of 125 against the dollar on Monday, but then recovered to a six-year low of 124, according to Reuters.

“The confirmation of YCC’s commitment has triggered aggressive yen selling, with the US dollar / yen pair rising to a high of 125.09 yen and now falling to 123.87 yen,” Katril said Tuesday morning.

“The Bank of Japan continues to buy unlimited bonds, [10-year] Government bond yields with a 0.25% limit under the framework of yield curve control. “

Slumping oil prices

currency

According to Coin Metrics, Bitcoin surpassed the key level of $ 45,000 overnight, eradicated the 2022 loss and jumped 6.7% to $ 47,914.35.

The US dollar index, which tracks greenbacks against baskets from other companies in the same industry, was 98.988, down from the previous level of around 99.

The Australian dollar was $ 0.7508, a little stronger than the previous level around $ 0.74.

— CNBC’s Arjun Kharpal contributed to this report.

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