Japanese stocks fluctuate after interest rate move, other markets post gains

SEOUL, Korea, Republic Of - Tokyo stocks finished nearly 3 per cent higher on Friday while the yen dived after after the country's central bank introduced a negative rate interest policy to boost the economy after previous stimulus efforts produced indifferent results.

See Full Article

Other Asian markets were higher after China's top economy official said there is no basis for the yuan to continuously weaken.

KEEPING SCORE: Japan's Nikkei 225 reversed losses to gain 1.6 per cent at 17,320.08. The index surged as much as 3 per cent briefly after the BOJ announcement. The policy decision is a possible boost for the economy but viewed by investors as negative for banks. Shares of Mitsubishi UFJ Financial Group fell 5 per cent. Hong Kong's Hang Seng gained 1.8 per cent to 19,544.72 and the Shanghai Composite in mainland China rose 2 per cent to 2,708.83. Australia's S&P/ASX 200 inched up 0.1 per cent to 4,980.40 while South Korea's Kospi fell 0.5 per cent to 1,897.27. Stocks rose in Taiwan, Singapore, Thailand and the Philippines but fell in Indonesia.

JAPAN RATE: The Bank of Japan said it is imposing a 0.1 per cent fee on some deposits left with the central bank, effectively a negative interest rate. It hopes that will encourage commercial banks to lend more and stimulate investment and growth. Latest data showed Japan's core inflation rate slipped 0.5 per cent in 2015 on low oil prices while consumer spending fell 4.4 per cent in December over a year earlier.

CHINESE YUAN: Chinese Premier Li Keqiang said on Thursday that there is no basis for continuous depreciation of the yuan, China's official Xinhua news agency reported. In his phone conversation with International Monetary Fund Managing Director Christine Lagarde, Li said Beijing has no intention of boosting exports by devaluing the renminbi.

ENERGY TALK: The Kremlin said on Thursday it is actively discussing the instability of oil markets with the world's key producers. Even though Russia said there was no concrete plan for a co-ordinated cut in production, it was enough to push the price of oil higher. Investors hope that talks could lead to production cuts that would begin to alleviate a global supply glut.

SAMSUNG SWINGS: Some Samsung companies were the biggest movers in Seoul after Samsung announced two stock deals. Shares of Samsung SDS dived 14 per cent to an all-time low while Samsung Engineering surged 14 per cent after Samsung said its de facto leader Lee Jae-yong would sell his 2-per cent stake in SDS to buy any unsubscribed shares in the troubled engineering company. Shares of Samsung Card traded 8 per cent higher after reports that Samsung Electronics would sell its stake in the credit card company to another Samsung insurance company.

WALL STREET: U.S. stocks closed higher on Thursday on hopes for an oil production cut and gains in tech stocks. The Dow Jones industrial average climbed 125.18 points, or 0.8 per cent, to 16,069.64. The Standard & Poor's 500 picked up 10.41 points, or 0.6 per cent, to 1,893.36. The Nasdaq composite index rose 38.51 points, or 0.9 per cent, to 4,506.68.

OIL PRICE: Benchmark U.S. crude rose 40 cents to $33.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 92 cents, or 2.8 per cent to close at $33.22 a barrel on Thursday. Brent crude, a benchmark for international oils, gained 51 cents to $35.31.

CURRENCIES: The dollar jumped to 120.39 yen from 118.84 yen the previous day. The euro weakened to $1.0921 from $1.0932.



Advertisements

Latest Economic News

  • Ivanka Trump ordered to testify in dispute with shoe company

    Economic CTV News
    NEW YORK -- Ivanka Trump must testify in a dispute with an Italian shoemaker over one of her company's shoe designs, a judge said Friday. U.S. District Judge Katherine Forrest rejected a request by the senior White House aide's lawyers that she be blocked from submitting to a deposition in the trademark infringement lawsuit brought by Aquazzura Italia SRL against her and her company IT Collection LLC. Source
  • Cooling measures already affecting hot Toronto housing market: survey

    Economic CTV News
    The recent intervention by the Ontario government to cool the Toronto-area’s hot housing market is already having an impact on sellers and buyers plans for the year, according to a new poll. At the end of April, Ont. Source
  • Why is the American teen summer job disappearing? [Video]

    Economic Toronto Sun
    WASHINGTON — It was at Oregon’s Timberline Lodge, later known as a setting in the horror movie “The Shining,” where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn’t pay much. But Doyle quickly learned lessons that served him for years as he rose to become the CEO of Domino’s, the pizza delivery giant: Source
  • Waiting for a Canadian housing crash? Warren Buffet bets against it buying 38% stake in Home Capital Group Inc.

    Economic Toronto Sun
    Warren Buffett's deal to back Home Capital Group Inc. does more than support a struggling mortgage lender -- it's a vote of confidence for a housing market that everyone from investors to global ratings companies say is a bubble ready to burst. Source
  • CIBC looks to generate quarter of earnings from U.S.

    Economic CBC News
    CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank now earns roughly five per cent of its profits in the U.S. Source
  • CIBC closes acquisition of U.S.-based PrivateBancorp

    Economic CTV News
    TORONTO -- CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank (TSX:CM) now earns roughly five per cent of its profits in the U.S. Source
  • Consumer demand for debt as high as it has ever been, Equifax says

    Economic CBC News
    Canadians' appetite for debt is as insatiable as ever, a new report from credit monitoring firm Equifax says. Equifax calculates that Canadian consumers owed $1.729 trillion at the end of the first quarter, an increase of 6.9 per cent in a year. Source
  • Sears Canada store closures expected to have little impact on RioCan

    Economic CTV News
    NEW YORK -- Sears is closing another 20 stores as the ailing retailer tries to turn around its business. Real estate investment trust Seritage, which owns the 20 real estate properties, confirmed the closings-- 18 Sears stores and two Kmart stores -- in a government filing Friday. Source
  • Ontario rent increases capped at 1.8 per cent next year

    Economic CTV News
    TORONTO - Landlords in Ontario will be able to increase rents up to 1.8 per cent next year, as rent controls are expanded under the Liberal government's housing plan. The annual rent increase guideline is the maximum amount a landlord can boost a tenant's rent without needing the approval of the Landlord and Tenant Board. Source
  • Norsat International investors approve takeover bid from Chinese firm

    Economic CBC News
    ?Norsat International Inc. says its securityholders have voted to approve a controversial takeover of the company by Chinese company Hytera Communications Co. Ltd. The Canadian satellite communications firm says its securityholders voted 72.53 per cent in favour of the offer of $11.50 US per share. Source