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
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
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 (
) growth may have slowed even as durable goods orders
China's consumer prices may rise as much as 5.5% this
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
Australia's Dollar traded at $1.0716 after earlier rising to a
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
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
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
The Dollar Index rose 0.1% to 74.213 after earlier falling as
much as 0.3%. The gauge, used by Intercontinental Exchange Inc. (
) to track the "Greenback" vs the currencies of 6 major US
trading partners, touched 73.735 on April 21, the lowest since
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%
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. (
) 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
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