Japan’s currency may face continued downward pressure if policymakers move too slowly on interest rate hikes, according to the head of the Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President Masato Kanda highlighted that the wide interest rate differential between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the US dollar due to higher yields The Bank of Japan risks being seen as “behind the curve” on inflation As a result, the yen struggles to strengthen even when global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a cautious policy stance to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ delays rate hikes further Investors lose confidence in Japan’s poli...
There is a sense of relief as FBM KLCI rebound after closing lower for 4 days. It is more of a technical rebound, with the index closed at 1,681.900, increased by 7.96 points.
The technical rebound come as there is sign of stabilization in price of commodities and ringgit.
The rebound is welcomed with a sign of relief after the FBM KLCI Index dropped 35.68 points on Monday (15/12/2014) and another 23.27 points on Tuesday (16/12/2014). The rebound happened as analysts believe the market is in an oversold condition.
On the other hand, the Asian markets were mixed with Japan’s Nikkei rose 0.38%, Hong Kong’s Hang Seng retreated 0.37%, while South Korea’s Kospi fell 0.21%.
The current financial crisis in Russia, and the sharp decrease in the oil price has negatively impacted the market.
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