Forex Marketz Daily Forex News – Fully Markets Update
The Japanese Nikkei jumped over two percent this morning on the heels of a weakening yen as the Dollar moved higher. There is also recent economic data showing that global manufacturing is starting to turn around.
The Japanese Nikkei 225 was up over two percent, up 2.40 percent, while the broader Topix 100 gained 2.3 percent thanks to the US Dollar hitting a new 14 year high thus weakening the export nation’s local currency, the yen.
As far as data is concerned the final reading of the Nikkei Japan manufacturing purchasing managers index (PMI) rose to 52.4 in December which was above the first reading of 51.9. The number came in at 51.3 in November. The private sector survey indicates that the country’s manufacturing sector is mounting a recovery thanks to increased domestic and global demand. Yesterday the markets saw a stronger-than-expected Caixin survey out of China as well as an upbeat US PMI reading.
US Dollar Supports Japanese Plays
The US Dollar index jumped to a fresh 14 year high at 103.82 yesterday. This was thanks to the strong US IDM manufacturing index which was up to 54.7 in December. The PMI’s highest level in two years.
The weaker Japanese yen and stronger regional PMIs and ISMs is boosting optimism about Japan’s exporters.
There are more signs that the global manufacturing sector is recovering. There are surveys not only showing strength in Japan, China and the United States but also in the United Kingdom. On Tuesday the CIPS UK Manufacturing CPI came in at its strongest reading since June 2014 at 56.1. The November number came in at 53.6.
This morning the yen was trading at 117.90, its fifth straight day of moving lower. This tends to boost the nation’s exporting plays. In Australia, the Australian Dollar was trading at 0.7225.
