Asian markets traded higher on Monday with the yen’s continued weakness boosting shares in Tokyo, while a deal to ease sanctions on Iran pushed the price of oil lower.
In Tokyo, the Nikkei 225 index rocketed 237.41 points, or 1.5%, to end the week’s first session at 15,619.13
Hong Kong’s Hang Seng Index docked 11.83 points, or 0.1%, to 23,684.45
Yen weakness continued to support Japanese stocks. The U.S. dollar added 1.1% last week against the yen putting it up a total of 4% against its Japanese counterpart over the last four weeks.
The yen weakened against the dollar in Asian trade — with the U.S. currency rising to ¥101.79, compared with ¥101.27 late Friday in New York. The market was looking ahead to a speech from Bank of Japan Gov. Haruhiko Kuroda, scheduled for later in the day, for hints on further easing measures.
The most recent data suggest that the market remains bearish on the yen, with figures from the International Monetary Market showing that the number of positions shorting the yen rose to 112,216 contracts in the week to Nov.19, compared with 95,107 contracts in the prior week.
Also in Japan, Fast Retailing Co. climbed 2.2% on news that the operator of the Uniqlo chain of shops is planning a secondary listing in Hong Kong in the first quarter of next year.
In Hong Kong, shares in China Petroleum & Chemical Corp. fell 2% after explosions at an oil pipeline owned by the firm in the eastern Chinese city of Qingdao killed 52 people.
The Australian dollar weakened further to 91.48 U.S. cents after losing nearly 2% against the greenback last week. In addition to comments from Reserve Bank of Australia Governor Glenn Stevens that the central bank could intervene in the market to fight the currency’s strength, a slowdown in the growth of Chinese manufacturing activity weighed on the Aussie.
The price of oil fell slightly, with benchmark Nymex crude falling 0.9% to $94.00 U.S. a barrel, on expectations a deal between Iran and six world powers could lead to more crude oil hitting the global market.
According to the deal reached over the weekend, Iran will stop all production of near-weapons-grade nuclear fuel, while Western powers will ease economic sanctions.
In other markets;
Shanghai’s CSI 300 index fell 9.33 points, or 0.4%, to 2,388.63
Korea’s Kospi Index added 9.75 points, or 0.5%, to 2,015.98
Taiwan’s Taiex Index tacked on 70.33 points, or 0.9%, to 8,187.51
The Singapore Straits Times Index forged ahead 7.80 points, or 0.3%, to 3,180.65
In New Zealand, the NZX 50 slid 4.12 points, or 0.1%, to 4,813.88
In Australia, the S&P/ASX 200 took on 16.92 points, or 0.3%, to 5,352.84
