The US dollar rebounded against the yen on Friday after Tokyo leaders made a “verbal intervention” over the Japanese unit’s strength as stocks edged higher on bargain hunting after three days of losses.
Japanese Prime Minister Naoto Kan on Thursday said the yen’s advance was too “rapid” and agreed with his right-hand man, Chief Cabinet Secretary Yoshito Sengoku, to closely monitor the issue.
The US dollar — which slumped to a 15-year low of ¥84.73 on Wednesday — was changing hands at ¥86.10 in Tokyo morning trade, up from ¥85.88 late on Thursday in New York.
However, analysts warned that the greenback was not yet out of the woods.
“We are still seeing the effect of the verbal intervention in the market, but I think it is limited,” said Hideaki Inoue, chief foreign exchange manager at Mitsubishi UFJ Trust and Banking Corp. “When you look at the market environment in the United States and Europe, the conditions bringing the yen higher still remain, possibly making it rise to the ¥85 level.”
On stock markets, Tokyo closed 0.44 percent higher, adding 40.87 points to 9,253.46, while Sydney jumped 1.33 percent, or 58.7 points, to 4,459.6.
Shanghai rose 1.21 percent, or 31.23 points, to 2,606.70, while Seoul closed 1.42 percent, or 24.49 points, higher at 1,746.24.
Hong Kong traders, however, could not shake growing concerns over the world outlook, ending down 0.16 percent, or 34.14 points, at 21,071.57, its fourth straight loss.
Dealers moved to pick up bargains after three days of heavy losses caused by weak economic data from Europe, the US and China.
In Taipei, the TAIEX rose 0.79 percent, or 61.79 points, to 7,891.58.
HTC rose 1.03 percent to NT$590, while Taiwan Semiconductor Manufacturing Co fell 0.17 percent to NT$60.1.
Other markets on Friday:
Singapore closed up 0.44 percent, or 12.93 points, at 2,939.97.
Wilmar International fell 2.34 percent to S$6.13, while Jardine Cycle and Carriage gained 1.02 percent to S$33.60.
Manila fell 0.39 percent, or 13.5 points, to 3,469.52.
Investment holding firm DMCI Holdings fell 1.5 percent to 20.35 pesos and property developer Ayala Land was down 2 percent at 14.88 pesos.
Kuala Lumpur closed up 0.8 percent, or 10.82 points, at 1,360.15.
Gaming giant Genting climbed 6.2 percent to 8.18 ringgit as telecoms firm Axiata rose 2.8 percent to 4.37 ringgit and hotel property company Pacific & Orient slid 3.2 percent to 1.20 ringgit.
Jakarta rose 0.90 percent,or 27.36 points, to 3,053.01.
Car maker Astra rose 1.5 percent to 48,300 rupiah, Telkom ended up 1.2 percent at 8,500 rupiah and Bank Negara gained 5 percent to 3,150 rupiah.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
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An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
COORDINATION, ASSURANCE: Separately, representatives reintroduced a bill that asks the state department to review guidelines on how the US engages with Taiwan US senators on Tuesday introduced the Taiwan travel and tourism coordination act, which they said would bolster bilateral travel and cooperation. The bill, proposed by US senators Marsha Blackburn and Brian Schatz, seeks to establish “robust security screenings for those traveling to the US from Asia, open new markets for American industry, and strengthen the economic partnership between the US and Taiwan,” they said in a statement. “Travel and tourism play a crucial role in a nation’s economic security,” but Taiwan faces “pressure and coercion from the Chinese Communist Party [CCP]” in this sector, the statement said. As Taiwan is a “vital trading
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