Yen Drifts Lower from 7-month High, Coronavirus Infections to Rise In Rural China

Arjun Pandit
23 Jan, 2023
Mumbai

Markets in Tokyo closed higher after the yen retreated from 7-1/2 month high reached last week and the Bank of Japan's minutes of meeting showed that the central bank took actions to improve bond market functioning. 

The Bank of Japan left its ultraloose monetary policy intact after the two-day meeting ending on December 20 but the meeting was also adjourned for 30 minutes to allow government representatives to discuss with the finance ministry, highlighting the gravity of the decision.  

Tokyo Electric Power Company declined 1.5% to ¥445.0 and the power utility company said it applied to the industry ministry to raise the residential utility rate by 30% from June to cover the higher fuel procurement expenses. 

Tepco also estimated a financial year ending in March loss of ¥317 billion or $2.4 billion compared to a ¥5.64 billion profit in the previous year, due to higher natural gas import prices and elevated wholesale electricity costs. 

The Nikkei 225 index added 1.3% to 26,906.04 and the yen closed at 130.63 against the U.S. dollar. 

Markets in mainland China, Hong Kong, Singapore and South Korea were closed to celebrate the Lunar New Year. 

Chinese markets will resume normal operations on January 30. 

In Friday's trading, the Shanghai Composite index jumped 0.8% to  26,906.04  and the Hang Seng index advanced 1.8% to 22,044.65. 

Stocks in Mumbai traded higher after five leading banks, Axis Bank, Canara Bank and ICICI Bank, IDBI and Kotak Mahindra reported higher than expected earnings.  

Indian market sentiment was also positive after the U.S. Fed officials' comments supported smaller rate hikes in New York on Friday. 

The Sensex index added 0.5% or 319.90 points to 60,941.67 and the Nifty index jumped 0.5% or 90.90 to 18,118.55. 

The rupee edged lower to 81.30 against the U.S. dollar.