Thursday’s regional calendar sees the release of trade figures from Japan and Malaysia, and labor market data from Australia and Hong Kong. Investors in China await policy news from a key leadership gathering in Beijing that is expected to end on Thursday.
But global sentiment is likely to drive local markets and the rotation out of tech stocks into other sectors – the Dow hit another record high – is unlikely to prevent further losses.
In currencies, the yen is on the rise after suspected intervention from Japan pushed it to a one-month high 156.00 per dollar on Wednesday. It looks like Tokyo’s third bout of intervention in a week, in which time the dollar has tumbled six ‘big figures’ from 162.00 yen.
Japan’s top currency diplomat Masato Kanda said on Wednesday he would have to respond if speculators cause “excessive” moves in the currency market and that there was no limit to how often authorities could intervene, Kyodo News reported.
Daily money market indicators from the Bank of Japan can indicate the scale of any potential action, but official confirmation on intervention and amounts spent only come at the end of every month.
