Secondary economic data in Japan coupled with slight dovish comments BOJ comments and the Nikkei started to drift lower. At worse the index was down around 1% but a lack of follow through volume saw a reasonable bounce into the close. Eventually, the Nikkei closed down 0.3% which, around mid afternoon looked very unlikely. The JPY again saw an active day but this time in the opposite direction. Having spent a lot of the morning with a 101 handle it was not until the European session that it moved to the mid 102’s. Still the talk is around the BOJ’s uncertainty towards additional monetary policy but given the ECB address today and the reaction Bunds and peripheral market had, it should be no surprise JPY was hit. Shanghai and Hang Seng were both better bid with HSI the best of the two closing 0.75% better.
This post was published at Armstrong Economics on Sep 8, 2016.