By Jamie McGeever
(Reuters) – A look at the day ahead in Asian markets.
Asian market sentiment is likely to remain subdued on Tuesday following the release of mixed Chinese economic data the day before, as investors digest unnerving political events in key developed economies ahead of several G10 central bank interest rate decisions later this week.
The resignation of Canada’s finance minister and vote of no confidence in Germany’s Chancellor on Monday come on the heels of a surprise credit rating downgrade for France on Friday. While not impacting emerging markets directly, these could all encourage investors to reduce risk exposure ahead of the central bank policy blitz.
On the other hand, the dollar and U.S. bond yields were very well contained and U.S. stocks rose sharply again on Monday – the Nasdaq clocked its 36th closing record high of the year – as investors anticipate a rate cut from the Federal Reserve on Wednesday.
The Japanese yen fell for a sixth consecutive day on Monday to a one-month low through 154.00 per dollar as traders cool on the prospect of a rate hike from the Bank of Japan this week or even in January.
Some of Japan’s recent economic indicators have been fairly strong, which on top of the national wage growth settlements being agreed, would appear to