Global Shares Advance, Diverting Flows Away From Haven Assets, Yen Inches Lower
Japanese Yen extended losses versus its American counterpart to a third consecutive trading session on Tuesday as global shares continued to advance, sapping investors’ appetite for safe-haven assets like the Yen.
The currency pair USDJPY surged more than 0.5 percent on Tuesday to 110.19 yen per dollar following a rise of 0.4 percent on Monday. As the prospect of war between the U.S. and North Korea receded, Asian shares traded higher, tracing gains on Wall Street overnight.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent while Japan’s Topix index surged 1.2 percent. Stock indexes from Hong Kong to Sydney were also on a rise with Hong Kong’s Hang Seng index adding 0.4 percent and Australia’s S&P/ASX 200 Index gaining 0.7 percent.
A report from Korean Central News Agency (KCNA) on Tuesday showed that Kim Jong Un praised the military for drawing up a “careful plan” to fire missiles toward Guam but also decided not to launch a threatened missile attack on Guam, saying that saying he would watch the U.S.’s conduct “a little more.”
Futures on the S&P 500 advanced by 0.3 percent in Asian morning session after the underlying gauge closed 1 percent higher on Monday.
Buy Stop at 110.250, Take profit at 110.900, Stop loss at 110.000