Yen Slumps, Japanese Investors Sell Euro Bonds

Data from the Japanese Ministry of Finance revealed that investors had sold a high amount of euro-denominated long and medium-term bonds in March 2014. 

The Tokyo-based Ministry of Finance stated today that Japanese money managers made net sales of 1.96 trillion yen equivalent to 19.2 billion U.S. dollars. Surprisingly, since the 10 months ended December 2011, this is the highest sales. The Japanese investors had purchased bonds of worth 5.39 trillion yen last year. 

Ayako Sera, a Tokyo-based market strategist at Sumitomo Mitsui Trust Bank Ltd. stated that Ukraine crisis plays a vital role. He also stated that going forward, it is expected that the Japanese money will be forced to go back into some of the higher yielding countries in the region. 

The yen moved down by 0.1 % to 140.28 against the euro. The yen also fell down by 0.1 % against the dollar trading at the level of 101.97 per dollar. When compared for the year on year basis, the Japanese yen had advanced by 3.2 % against the euro this year. While against the dollar, yen advanced by 3.3 % this year.

Asian Stock Market Down – Forex Up

Asian stock markets had slight records to look at this morning as equities stay to effort on the Russia Ukraine scenario and also reply to Wall Street. Asian markets are trading on a negative message today on the back of additional than expected decay in US manufacturing data in yesterday’s trade, thereby representative a slowdown in the world’s major economy.

The Hang Seng was low by 0.10% while the Nikkei 225 was low by 0.35% and the Chinese market was top by 0.33%. Asian stocks fell, through the regional benchmark key sliding after its main gain in a month. US markets stimulated frequently lower led moderately by a fall in US manufacturing movement.

Let European stock markets clipped last week’s gains to close lower on Monday, off the back of weak Chinese statistics and intensifying tension in Ukraine. 

The US Dollar Index traded down by 0.2 % yesterday on the back of optimistic market feelings in initial part of the trade which ran to fall in request for the little yielding currency. The astonishment performer this morning is the Australian dollar which is trading at 0.9138 after moving a 2014 earlier in trading services.

Remaining in the Pacific county the Japanese yen relieved against together the US dollar and the euro to trade at 102.30 and 141.53 as traders look carefully the effects of the sale tax rise hitting on the 1st of the month and the response by the Bank of Japan.

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