Yen Weakens to 6-Month Low on Risk-Linked Selling; Pound Rises

Update berita dari PT. Jalatama,  The yen fell to a six-month low versus the dollar after reports showed manufacturing in China, Europe and the U.K. expanded last month, driving demand for risk and underscoring Japan’s currency’s role in the carry trade.

Japan’s currency weakened against most of its 16 major counterparts as Governor Haruhiko Kuroda said the Bank of Japan will keep monetary policy accommodative until inflation is stable at 2 percent. The pound reached the strongest level since January against the euro after a gauge of U.K. manufacturing increased in November at a faster pace than analysts forecast. New Zealand’s dollar rallied, while Canada’s currency traded at the weakest level since October 2011.

The yen fell 0.5 percent to 102.94 per dollar at 5 p.m. New York time, touching the least since May 23. Japan’s currency fell 0.1 percent to 139.40 per euro after depreciating to 139.71 on Nov. 29, the weakest level since October 2008. The euro dropped 0.4 percent to $1.3542.

(Source: Bloomberg)

U.K. Recovery Seen at Risk as Rebalancing Eludes Economy

Britain’s consumer and housing-driven recovery, the fastest among Group-of-Seven nations, risks losing steam unless export growth picks up, economists said.

While the economy grew the fastest in more than two years in the three months through September, the expansion was led by consumer spending, construction and stock building. Net trade knocked 0.9 percentage point off GDP, the most since the second quarter of 2011.

Bank of England Governor Mark Carney this week extolled the strength of the economy’s revival, while acknowledging that weak growth in the euro area may weigh on the export outlook and limit rebalancing of the economy. Part of the domestic demand is linked to a revival in the housing market, which has fueled concerns of a brewing bubble. Carney will address those risks at a press conference in London today.

“The consumer is a big part of the economy, so it’s always going to be an important component of growth but it shouldn’t be the sole component,” said Carl Astorri, senior economic adviser to the EY ITEM Club. “To get the stronger recovery that we’re forecasting for next year does rely on it broadening out.”

The U.K. economy grew 0.8 percent in the last quarter, the Office for National Statistics said yesterday. Investment in private-sector dwellings climbed 5.9 percent, the most in two years. Consumer spending increased for an eighth consecutive quarter. Exports, which account for about one third of the economy, fell 2.4 percent, the most in more than two years.

(Source: Bloomberg)

Most Asian Stocks Fall as U.S. Consumer Confidence Drops

Most Asian stocks fell, dragging the regional benchmark index lower for a second day, after U.S. consumer confidence unexpectedly dropped this month.

Industrial Bank of Korea sank 4.2 percent as the South Korea government sells 13.2 million of shares in the lender. BHP Billiton Ltd. lost 1.2 percent in Sydney after copper prices fell for the first time in more than a week. Rakuten Inc. surged 9.6 percent after the website operator said it will increase its dividend following a plan to move its listing to the First Section of the Tokyo Stock Exchange.

The MSCI Asia Pacific Index declined 0.1 percent to 141.53 as of 9:39 a.m. in Hong Kong as five shares fell for every four that rose. The gauge gained 9.5 percent this year through yesterday as central banks around the world pledged to leave interest rates near record lows for a prolonged period.

The MSCI Asia Pacific Index yesterday traded at 13.9 times estimated earnings, close to the multiple of 14 reached on Nov. 18, which was the highest since May, according to data compiled by Bloomberg. That compares to a current multiple of 16.3 on the S&P 500 and 15.1 for the Stoxx Europe 600 Index.

(Source: bloomberg)