Stocks Are Mixed, Asian Currencies Reach a Two-Decade Low – Asia Market Wrap

A index of Asian currencies fell to its lowest level in over two decades versus the Dollar, and shares varied, with gains from a thriving chip industry offset by drops in Japanese companies.

Benchmarks in Taiwan and South Korea rose, aided by SK Hynix and other technology companies, after Microsoft’s $80 billion data centre investment sparked interest. Hon Hai Precision Industry, Nvidia and Apple’s assembly partner, rose after the business, often known as Foxconn, posted higher-than-expected sales.

Japan’s Topix fell, with Nippon Steel down after US President Joe Biden halted the company’s planned $14.1 billion merger of US Steel. US market futures indicated to a worse opening on Wall Street later in the day.

The Yen led falls among Group-of-10 currencies versus the Dollar, while the Canadian currency benefited from a Globe and Mail report that PM Justin Trudeau is expected to leave as Liberal Party leader this week. According to RBC Capital Markets, the Canadian Dollars’s gains may be short-lived due to the currency’s ‘bearish macro backdrop’.

China maintained its support for the Yuan with the daily reference rate after it fell below a critical threshold on Friday.