Asia stocks slip, risk aversion grips for United States debate
- Author: Anthony Vega Sep 28, 2016,
Sep 28, 2016, 5:51
In Tokyo, the dollar traded 100.97 yen, slightly off 101.02 yen in NY late Friday.
Last week's trading was dominated by sharper monetary policy signals from the Bank of Japan and US Federal Reserve.
USD off lows but wobbly as market braces for political events * Dollar fares better against Aussie, loonie after oil slide (Updates prices, adds details and quotes) By Shinichi Saoshiro TOKYO, Sept 26 (Reuters) - The dollar wobbled against the yen and euro on Monday, cautiously held in a narrow range ahead of the impending first debate between US presidential candidates that could determine the currency's near-term direction. It saw a one-month low of 100.100 on Thursday before pulling back to as high as 101.250 towards the end of last week.
Europe's broad FTSEurofirst 300 index eked out a 0.06 percent gain at 1,339.11. The common currency briefly rose to as high as $1.1258 on Thursday.
Democrat Hillary Clinton and Republican Donald Trump will square off at 0100 GMT.
"Real yields have pushed much lower and there doesn't seem the potential for the Fed to move market expectations sharply from where they are - around 55 percent for a hike in December". "Anything triggering fears for a strong yen trend is negative to stocks", said Takuya Takahashi, a strategist at Daiwa Securities.
The markets say they tend to see Clinton as the candidate of the status quo, while many are uncertain what Trump would mean for US foreign policy and the American economy.
"There's a thing called Trump thermometer", said David Bloom, London-based global head of forex strategy at HSBC.
The Australian dollar rally during the course of the session on Monday, reaching above the 0.76 level.
But with the probability of a rise in USA interest rates in December seen as unlikely to move swiftly higher, a number of major bank analysts believe the dollar could have peaked for now and may suffer, particularly against the yen, in coming weeks. For the week, US crude still managed to gain 3 percent.
Mobile carrier SoftBank, a market heavyweight, gained 0.64 percent to 6,666 yen, while Uniqlo operator Fast Retailing, also heavily weighted, fell 0.94 percent to 32,400 yen.