Yen Faces Triangle Test as Trading Patterns Point to 7-Year Low

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The yen is poised to weaken toward a seven-year low versus the dollar, trading patterns suggest, amid prospects that a strengthening U.S. economy will allow the Federal Reserve to raise interest rates this year.

The bias is for further yen declines, according to JPMorgan Chase & Co. and IG Markets Securities Ltd., after the dollar-yen exchange rate closed above its 21-day moving average for the first time in a month on Feb. 6, when Labor Department data showed the biggest three-month rise in U.S. payrolls for 17 years.

Analysts point to a re-test of the 119 level for the pair this week, the upper boundary of a triangle pattern formed from the dollar™s multi-year high of 121.85 yen reached on Dec. 8. The two currencies rose to 119.22 on Feb. 6, before retreating to 118.48 as of 1:16 p.m. in Tokyo.

U.S. data due later this week, including January retail sales, will be important in determining the direction of dollar-yen, Ishikawa said. Consumers probably cut spending by 0.5 percent last month compared to December, when sales fell 0.9 percent, according to the median estimate of economists surveyed by Bloomberg News before the Feb. 12 report.

Source : Bloomberg

Gold Extends Gain as Greek Standoff With Creditors Boosts Demand

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Gold rose for a second day on concern that a standoff between the new Greek government and its creditors may worsen, with German Chancellor Angela Merkel signaling little willingness to compromise over bailout conditions.

Bullion for immediate delivery advanced as much as 0.5 percent to $1,245.36 an ounce, and was at $1,243.90 at 11:27 a.m. in Singapore, according to Bloomberg generic pricing. Prices, which gained 0.4 percent on Monday, haven™t posted a back-to-gain daily gain since Jan. 16.

German leaders said they won™t extend more assistance to Greece without strings attached, and the impasse risks leaving Europe™s most-indebted state without funding by the end of this month, when the current bailout expires. Greece will seek about 10 billion euros ($11.3 billion) in short-term financing to stave off the cash crunch, according to a government official who asked not to be identified. Bullion rose 5 percent in 2015, after two years of losses, as investor holdings expanded .

Holdings in global exchange-traded products backed by gold increased on Monday to 1,678.21 metric tons, the highest level in four months, according to data compiled by Bloomberg. Assets expanded in January for the first time since July.

Gold for April delivery rose 0.2 percent to $1,243.80 an ounce on the Comex. Silver for immediate delivery added 0.4 percent to $17.062 an ounce. Spot palladium increased 0.4 percent to $783.17 an ounce, while platinum rose 0.2 percent to $1,220.63 an ounce.

Source : Bloomberg

Japan Stocks Swing as Investors Weigh Earnings, Greece Concern

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Japan™s Topix index swung between gains and losses as investors weighed corporate earnings and the yen held gains amid concern Greece™s rejection of an international bailout may lead to fresh turmoil in the euro zone.

Nissan Motor Co. jumped 3.3 percent after raising its annual profit forecast. Oil explorer Inpex Corp. gained 3 percent after crude prices gained Monday. Air-conditioner maker Daikin Industries Ltd. dropped 5.3 percent after Credit Suisse Group AG said operating profit missed market expectations. Pump maker Ebara Corp. lost 1.4 percent after cutting its full-year net-income forecast.

The Topix index fell 0.2 percent to 1,422.12 at the trading break in Tokyo, swinging from gains of as much as 0.2 percent. The Nikkei 225 Stock Average slipped 0.8 percent to 17,573.51. The yen traded at 118.49 after strengthening 0.4 percent Monday as demand grew for the haven currency as Greek officials seek short-term financing to head off a funding crisis.

Source : Bloomberg

China Stocks Rise as Slowing Inflation Boosts Policy Easing Odds

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China™s stocks rose for a second day as official data showing inflation slowing more than forecast spurred speculation the government will further ease monetary policy to boost the world™s second-biggest economy.

Financial and material companies led gains, with Poly Real Estate Group Co. and Inner Mongolian Baotou Steel Union Co. climbing more than 2 percent. The consumer-price index rose 0.8 percent in January, compared with the projection for a 1 percent increase, while the slide in factory gate prices deepened to 4.3 percent, extending a stretch of declines to 35 months.

The Shanghai Composite Index climbed 0.7 percent to 3,116.52 at 10:13 a.m. The data add to concern demand is weakening and put pressure on the central bank to lower borrowing costs to sustain economic growth. Data for January showed imports falling by the most in more than five years, manufacturing gauges signaling a contraction and services expanding at the weakest pace in six months.

The CSI 300 Index rose 1 percent. Hong Kong™s Hang Seng China Enterprises Index added 0.4. The Hang Seng Index lost 0.1 percent. The Shanghai index has gained 51 percent over the past year, the second-best performer among 93 global benchmarks tracked by Bloomberg. It™s valued at 11.6 times 12-month projected earnings, compared with the five-year average multiple of 10.3, according to data compiled by Bloomberg.

Source : Bloomberg

China’s Stock-Index Futures Fall Before Inflation Data

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China™s stock-index futures fell before the release of inflation data.

Futures on the CSI 300 Index expiring in February, the most active contract, slipped 0.1 percent to 3,359.80 as of 9:27 a.m. local time. Consumer prices probably rose 1 percent in January from a year earlier, slowing from a 1.5 percent gain a month earlier, according to the median estimate of a Bloomberg survey. Declines in producer prices accelerated to 3.8 percent from 3.3 percent in December, the survey showed. The report is scheduled to be released at 9:30 a.m.

The data will add to concern demand is weakening and that further monetary easing is needed to sustain growth in the world™s second-biggest economy. Data for January showed imports falling by the most in more than five years, manufacturing gauges signaling a contraction and services expanding at the weakest pace in six months.

The Shanghai Composite Index climbed 0.6 percent to 3,095.12 yesterday as consumer companies rallied before the start of Chinese new year holidays this month. Hong Kong™s Hang Seng China Enterprises Index fell 0.4 percent to 11,672.42. The CSI 300 Index rose 1 percent. The Hang Seng Index lost 0.6 percent.The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, slipped 0.1 percent.

The Shanghai Composite is down 8.5 percent from a five-year high set on Jan. 26 after the regulators tightened rules on margin trading to cool the market. Still, the measure has jumped 51 percent over the past year, the second-best performer among 93 global benchmarks tracked by Bloomberg.

Source : Bloomberg