Tuesday, September 1, 2009

Asian Shares Fall; Japan Erases Rise,China Mkt Drops

Hyundai Steel was up 4.0% after news it had hiked prices of its main steel products, and sold 12.85 million shares of Hyundai Motor to Hyundai Mobis.
In foreign exchange markets, the U.S. dollar was at Y92.63, from Y93.61 in New York on Friday, going below Y93.00 for the first time since July as exporters sold the dollar.
Hideki Amikura, deputy general manager at Nomura Trust and Banking, said the election result was "behind some of the yen-buying this morning, since the DPJ seems more tolerant of a stronger yen as the party is more focused on expanding domestic demand."
He also cited statements on the benefits of a strong yen from "the brain of the DPJ" - key party advisor Eisuke Sakakibara, who was a possible candidate for a government post. Sakakibara is a former top finance ministry currency bureaucrat, and was known as "Mr. Yen" for his ability to move the markets.
Although the landslide win was a watershed event, Brown Brothers Harriman said: "One cannot expect the Mandarins of the bureaucracy to simply roll over for the incoming government, so important drivers for the yen in the period ahead will likely be the generalized risk-appetite of global investors and the machinations around the fiscal half year end for Japanese companies."

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