Japan’s Nikkei Index Capping an Important Rally

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Japan's Nikkei Index Capping an Important Rally
Japan's Nikkei Index Capping an Important Rally

Japan's Nikkei Index Capping an Important Rally

The Japanese stock market and major shares rallied in the early morning on Tuesday after yesterday’s holiday, hence taking other Asian markets up as well, but this bullish move may be a bullish correction of the past week’s fall.

The MSCI Asia Pacific index soared in Tokyo by nearly 0.3% which is a considerable rise after making a three-weeks downward move and a new low point. Whereas, the Topix Index gained 0.2% and the Australian dollar remained firm and is stable at yesterday’s low since the interest rate was kept unchanged by the Reserve Bank of Australia.

Commodities at a glance

The futures of Copper showed upward movement in their prices by around 0.4% as the demand for copper and platinum is increasing in the Asian market, since good healthy activity is being seen in the construction and mining sector. Moreover, the demand of gold might boost up in near future as the Chinese economic indicators released previously show improvement in the manufacturing sector, so being the largest consumer of gold it may need to consume more so sellers of gold must be cautious.

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Massive Results

There were around 317 companies in Asian region that posted earnings this season, and out of them more than 50 percent of the companies have beaten the expected figures of the analysts in terms of profits and as well as sales.

Thai Baht – Devaluation

But on the other hand, Thailand’s Thai Baht dropped a fourth consecutive day by 0.2% and is currently trading at the 31.31 level against the U.S dollar. It is all in result of the concerns that arose due to the protests against a bill that allows to give a pardon or amnesty to those politicians who have misused their powers for their own benefits and have caused negative outcomes to the country. Therefore, the current political scenario is deterring the bulls to enter the market for the Thai Baht, and is resulting in devaluation of the local currency in the international market.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com