Share

Asian shares up, dollar rallies in thin trade

Hong Kong - Asian shares rose on Tuesday, with Tokyo extending a recent rally after the yen hit a fresh six-year low against the dollar, while the pound struggled to recover from the previous day's sell-off fuelled by fears of Scottish independence.

The gains came despite a soft lead from Wall Street, while trade was quiet owing to public holidays in Hong Kong and Seoul.

Tokyo rose 0.45%, Sydney added 0.19% and Shanghai edged 0.10% higher.

Japanese exporters were the main winners in early trade a day after the dollar broke above the ¥106 level for the first time since October 2008, at the height of the financial crisis.

The greenback picked up in New York after Friday's disappointing US jobs data was put into perspective by another round of weak Japanese growth figures and anaemic Chinese trade statistics.

However, equities markets on Wall Street were not as strong. The Dow eased 0.16% and the S&P 500 fell 0.31% while the Nasdaq edged up 0.20%.

John Kicklighter, chief currency strategist at DailyFX, said the dollar's latest rise was "less to the dollar's own intrinsic merits and more to the exceptional weakness of its counterparts".

The dollar fetched ¥106.07 in early Asian business, compared with ¥106.03 in New York.

The euro was also under pressure after the European Central Bank last week announced a fresh interest rate cut and fresh easing measures. The single currency bought $1.2892, a 14-month low and ¥136.73 against $1.2895 and ¥136.72 in New York.

The pound was stuck at a 10-month low against the dollar after tumbling on Monday in response to a survey that showed for the first time more people in Scotland could vote for independence from the United Kingdom than against.

The British pound bought $1.6101, its weakest since November and well down from $1.6323 on Friday before the survey. The news has given a jolt to investors who had not envisaged a victory for the "Yes" campaign and so had not priced in the effects of a break-up of the UK.

On oil markets US benchmark West Texas Intermediate for October delivery rose 40 cents to $93.06 while Brent crude for October was up 7c at $100.27.

Gold was at $1 257.59 an ounce, against $1 265.51 late on Monday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.09
-1.0%
Rand - Pound
24.06
-0.7%
Rand - Euro
20.58
-0.5%
Rand - Aus dollar
12.39
-0.3%
Rand - Yen
0.13
-0.9%
Platinum
894.64
-0.3%
Palladium
992.99
-0.9%
Gold
2,196.85
+0.1%
Silver
24.44
-0.8%
Brent Crude
86.09
-0.2%
Top 40
67,964
+0.4%
All Share
74,173
+0.4%
Resource 10
56,465
+1.4%
Industrial 25
103,617
+0.3%
Financial 15
16,480
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders