Quantcast
Menu
Save, make, understand money

Investing

Asian markets fall; Nikkei skirts bear territory

Alasdair Pal
Written By:
Alasdair Pal
Posted:
Updated:
07/06/2013

Asian markets fell again overnight over uncertainty around US employment numbers out later today.

Their release could prove a crucial turning point in assessing when the Federal Reserve might decide to start reducing its $85bn-a-month asset purchase plan.

In Japan, the Nikkei 225 finished down 1.1%, after falling as much as 2.8% earlier in the day.

It has now lost nearly 20% from the five-year highs reached last month, entering bear market territory.

Investors also piled out of long positions on the dollar versus the yen, on fears US non farm payroll figures would undershoot expectations.

Japan’s currency rallied as a result, with the yen strengthening against the dollar from Y99.37 to below Y96.

On Thursday, the yen saw its biggest one-day gain against the dollar since the 11 March earthquake in Japan, rising from Y99.37 to Y95.91.

Elsewhere, Hong Kong’s Hang Seng index fell 1.2%, with markets in Australia and Korea also suffering falls.