The Japanese yen strengthened during midday trading after initially hitting 160 against the U.S. dollar on Monday, with most Asia-Pacific markets experiencing gains in stocks.
The yen appreciated by approximately 2% to hover around 155 after briefly weakening to 160.03 earlier in the session. The Bank of Japan opted to keep interest rates unchanged on Friday. Japanese stock markets remained closed due to a public holiday.
Market watchers are now focused on the upcoming Federal Reserve meeting following another higher-than-expected U.S. inflation reading on Friday.
In March, the core personal consumption expenditures, excluding food and energy, increased by 2.8% compared to a year ago, exceeding the 2.7% forecasted by Dow Jones. Personal spending also surpassed estimates, rising by 0.8% against the expected 0.7%.
In Asia, China’s official purchasing managers index for April is anticipated to be released on Tuesday, ahead of the Labor Day holiday on Wednesday, along with Japan’s industrial production and retail sales data from March.
Australia’s S&P/ASX 200 closed up 0.81% at 7,637.40, rebounding from losses experienced on Friday.
South Korea’s Kospi rose by 1.17% to end at 2,687.44, while the small-cap Kosdaq gained 1.51% to close at 869.72.
Hong Kong’s Hang Seng index increased by 0.66%, while China’s CSI 300 added 1.11% to close at 3,623.91, reaching its highest level since November 6, 2023.
U.S. stocks surged on Friday, with the S&P 500 and Nasdaq Composite marking their best week since November as Big Tech stocks rallied on strong earnings.
The S&P 500 climbed by 1.02%, while the Nasdaq surged by 2.03%, recording its best session since February. The Dow Jones Industrial Average also rose, gaining 0.4%.
