There has been a sharp rise in the Asian stock market on Monday as the recent economy data came in favor of the stockholder. The weaker Yen caused a massive rise in the Asian stock market since investors are overly cautious to buy the stock with cheaper Yen. On the contrary, the regional shares also become pretty strong though they shareholders knew that money will be return back to the emerging Asia within a very short period of time. The Japan’s Nikkei NIK, +).77% also showed positive momentum in the market. On the other side the Hong Kong’s Hang Sang Index often known as HSI,+0.06% was up by 0.3%.Though most of the shares were trading higher in the Asian stock market but the Australia’s S&P/ASX 200 XJO, -0.15% remain flat despite the weakness of the Japanese currency. But on the other hand, the Shanghai Composite SXCOMP,+ 0.795 sharply rise in the market which resulted in 0.9% gain in the global market. To be precise the recent strength of the U.S dollar has weakened the Japanese Yen to a great extent and professional traders are using this simple result to drive the price of stock higher in the current market. On the contrary, the pending rate hike decision by the FED in the month of December has also created chaos into the mind of investors since the last two-month economic performance by the U.S economy was extremely great. So far, there is an 81.3% chance of rate hike in the month of December according to the FED rate hike monitor tools.
The current performance of the Japanese economy is a little bit sluggish compared to the last three-month performance. Over the last three months, Japan’s economy grew 2.2% which didn’t meet the expectation of the leading Japanese economist in the last month. According to the ministry of finance in Japan, there has been a sharp fall in the exporting sector which nearly exceeded 10.3% in the month of October. Things became much worse in the month of October since expectation since the drop was 9.4% more according to the forecasted data. But conservative traders are overly cautious about the recent weakness of the Japanese economy since the China is also experiencing slugging economy. The 276-day policy on the coal miners has affected the Chinese economy to a great extent and according to the leading economist in the Japanese’s stock exchange the Yen might become stronger in the recent days in the event of degrading Chinese economy. Though the Chinese government has imposed strong labor policy in the coal industry but optimistic investors are thinking to make tons of money from this rule. In the eyes of trained investors, this 276-day policy might give the Chinese billions of dollars profit in the near future which will definitely stabilize their coal industry. And a sudden stable performance from the Chinese economy is definitely going threat the Japanese stock market to a great extent. Due to the prevailing uncertainty in the stock market many professional investors are staying on the sideline in order to protect their hard earned profit from the chaotic market.
The recent global economic crisis has settled down to a certain extent as the mighty U.S dollar gained some strength in the event of the US presidential election. All the major rivals were broadly lower against the green bucks as Mr. Trump win the election. Though there was a misconception about the performance of the stock market upon the winning of Mr., Trump but the market reaction was extremely positive as Trump wins the election. This event has also affected the exotic pairs in the market to a great extent. The Philippine Peso fell by 0.5% whereas the Malaysian ringgit fell by 0.3%.Most importantly the South Korean won slipped 0.4% on this event. The Chinese government also pushed the Yen lower in the global market which caused them 12th straight fixing lower. According to leading economist Erwin Sanft china has moved out of the deflation problem in the recent days and this prolific statement dipped the china’s share in Hong long to a certain extent. He also stated that the current economic problem in China is temporary and they are going to have stable economic performance in the near term future. Such an optimistic statement created a massive chaos into the mind of investors and the ongoing performance of the stock market.
The green bucks remained stronger against most of its major rivals in the financial market and the USDJPY pair strengthens to ¥111.08 which is also the highest level since 31st may 2016.The most leading organizations in china like insurance, shipping manufacturing companies also gained some strength on the financial market upon the recent strength of the US dollar against the Japanese Yen. Insurance, shipping manufacturing, and construction stocks also gain in the benchmark Shanghai Composite. In the eyes of trained professional, the Shenzhen –Honk Kong trading link is going to play a major role in the stock market since they are going to launch 880 Shenzhen stocks to offshore funds. To be honest, this event is going to take place well before the FED hike their interest rate in the month of December causing a surging move in the Asian stock market. The leading electronic parts maker often known as the Murata Manufacturing 6981, rallied up by 3%and semiconductor manufacturing companies like Renesas Electronics also gained 1.9% in the in the recent days. Things are going pretty well in favor of the stock market and professional traders are calling it as the best rally in the stock market.