Asian shares slipped on Monday after a run of upbeat economic data from the United States and globally lessened the risk of recession, but also suggested interest rates would have to rise further and stay up for longer.
Bond markets took a beating in the wake of stunning reports on jobs and services, catching speculators very short of dollars and sending the currency sharply higher.
The dollar extended its rally on the yen to a three-week top of 132.60 on Monday amid reports the Japanese government had offered the job of central bank governor to the current deputy, Masayoshi Amamiya.
Amamiya has been closely involved with the Bank of Japan’s current super-easy policies and is considered by markets to be more dovish than some other contenders.
The early gains were later pared to 132.29 yen but still helped the dollar hold firm on a basket of currencies at 103.150 , having jumped 1.2% on Friday. The euro was huddled at $1.0787 after shedding 1.1% on Friday.
In equity markets, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.5%, with South Korea down 0.6%. Chinese blue chips lost 1.0%.
This report’s information was first seen on Zawya.com; to read more, click this link.
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