Asian markets seems to do well even after growing concerns about the outcomes of the nuclear incident which occurred due to yet another earthquake in Fukushima even when Japan has graded the nuclear emergency equivalent to the level of Chernobyl in the year 1986. In currency markets rise in the value of the Dollar against Yen has been noticed. However, the reluctance on the part of investors in trading in riskiest trade could be seen.
in addition to the obvious concerns, shares of a number of companies in the material sector saw fall since crude oil prices as well as some other resources backed-off.
Japanese Index Nikkei rose 0.6%, Hong Kong Hang Seng Index advanced 0.2%, while South Korean Index rose by 0.3%. Contrary to the exception, Chinese Shanghai Composite index alleviated by 0.2%.
The weakness of Yen has proved as sustainer of the Japanese companies. According to a report, Renesas Electronic and Microcontrollers supplier are expected to reopen their quake-hit factory. Renesas stocks have rushed and consequently, putting the shares of automakers that are depended on the company by 9.9%. The rise has been noticed in Honda Motor and Toyota Motor which rose to 2.3% and 2.2% respectively.
The pairing of USD/JPY reached to the ending of mid March low on Friday at 85.50, and the pair withdrew to 83.45/50 on Tuesday in between the concerns regarding the outcomes of Fukushima accident, and the pair bounced up from here and get back to 84.00 on Asian session.
On the other hand, EUR/USD proved strong as the pair retreated from 1.4485 high on Friday got the support at 1.4375 area and they bounced on early US session breaching 1.4500, and created a new one-year high which was 1.4520.
The March low of GBP/USD pair was limited at 1.6435 area on Friday and Monday and the pair moved back to 1.6225 on Tuesday. Though the pair tried to recovery on US session, but all the efforts went in vain as they couldn’t make to reach beyond 1.6320/30. During most of Asian Session, the Sterling has been noticed to trade flat beyond 1.6250