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In Asia: Yen weakens on Outlook for Japan stimulus; Gold and Crude Oil rises
The Yen weakened on speculation the Bank of Japan will this week maintain monetary stimulus and the central banks will tighten policy elsewhere.

Gold rose to a record, Crude Oil gained for a 4th day and Wheat reached a 2 month high.

Japan's Yen dropped to 119.61 per Euro from 119.24 in New York last week.

Gold advanced for a 9th day running, Crude Crude increased 0.4% in New York and Wheat rallied 2.2%. The MSCI Asia Pacific Index slid 0.2%, while the Shanghai Composite Index retreated 0.7% on concern inflation will accelerate. Futures on the Standard & Poor's 500 Index increased 0.1%.

The Bank of Japan is set to hold borrowing costs near Zero on April 28, with data forecast to show retail sales sank last month after the record earthquake. Economic reports this week will point to accelerating industrial orders in Europe, while US gross domestic product ( GDP ) growth may have slowed even as durable goods orders increased.

China's consumer prices may rise as much as 5.5% this month.

The yen weakened against all 16 most actively traded counterparts and declined to 82.27 per USD from 81.88. Japan's retail sales dropped 6.1% in March from a year earlier after rising 0.1% in February, according to the median estimate of economists before the government data due April 27.

The Bank of Japan may cut its forecast for real growth for F-Y 2011 to 0.8 from 1.6% as a result of the March 11 earthquake, the Nikkei newspaper reported Monday. The central bank will keep its Key interest rate at a range between Zero and 0.1% at its next meeting.

Australia's Dollar traded at $1.0716 after earlier rising to a record $1.0776.

The Singapore Dollar was little changed at S$1.2350 vs the "Greenback" after touching S$1.2318.

The Malaysian Ringgit gained as much as 0.4% to 2.9913, the Strongest mark since October 9, 1997, on speculation the central bank will raise interest rates next month to help damp inflation.

The Federal Open Market Committee (FMOC) will hold the Key rate in a range of Zero to 0.25% on April 27 we at LTN believe.

US GDP rose at a 1.9% annual pace after increasing at a 3.1% rate in the previous 3 months before an April 28 Commerce Department report.

The Dollar Index rose 0.1% to 74.213 after earlier falling as much as 0.3%. The gauge, used by Intercontinental Exchange Inc. ( ICE ) to track the "Greenback" vs the currencies of 6 major US trading partners, touched 73.735 on April 21, the lowest since August 2008.

Immediate-delivery Gold rose 0.5% to a record 1,514.72 oz as players bought precious metals as a store of value.

Cash Silver traded at 47.8587 oz after earlier rallying 1.4% to 47.8925.

Corn for July delivery rose as much as 2.6% to 7.64 a bushel on speculation that wet, cold weather across the US Midwest will delay planting, reducing yields.

Wheat increased as much as 2.7% to 8.57 a bushel before trading at 8.5275.

Crude Oil for June delivery increased 0.4% to 112.70 bbl on the New York Merc, after Syrian security forces detained at least 200 people following the killing of anti-government protesters and US Senator John McCain said rebels in Libya need more assistance in the fight against Muammar Qaddafi 's forces.

About 4 shares gained for every 3 that fell on MSCI's Asia Pacific Index, which rallied 2.2% last week. That was its best weekly gain in a month.

China Petroleum & Chemical Corp. ( SNP ) and China Shenhua Energy Co. led losses in Shanghai trading. CICC said consumer prices may rise between 5.2% and 5.5% in April, compared with the government's full-year inflation target of 4%.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Commodities

Referenced Stocks: GDP , ICE , SNP

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