Asian Shares Higher as Japan Gains on Weaker Yen – Asia Market Wrap
Japanese equities gained as the yen’s recent weakening benefited the country’s exporters, taking the lead in Asia after a quiet session on Wall Street.
The MSCI Asia Pacific index rose for the fifth consecutive day, its longest stretch since July. Stocks in Tokyo rose after the yen fell to a five-month low of 158 per dollar in the previous session, following Bank of Japan Governor Kazuo Ueda’s comments Wednesday that avoided providing a firm signal on interest rates next month.
The Japanese yen recovered marginally on Friday after Finance Minister Katsunobu Kato stated that the government will take suitable measures to prevent excessive swings in the foreign exchange market. Inflation in Tokyo rose for the second month in a row, according to data released Friday, with retail sales again above expectations.
Japan’s latest economic performance suggests the need for the BOJ to keep considering tightening policy in the coming months. A summary of the central bank’s December meeting revealed that its board members had differing views on the timing of another rate hike, owing in part to economic concerns in the United States.
Elsewhere in Asia, Hong Kong and mainland Chinese stocks recovered. Equities climbed in Australia, while South Korean stocks fell as the country’s political uncertainty persisted. US futures edged lower.
