ASIAN STOCKS TALKING POINTS:
- Asian Stocks put in a mixed performance
- The US decision to pull out of a nuclear deal with Iran was front and centre
- Japanese wages showed some vigor at last
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Most Asian stock markets were slightly lower Wednesday as investors sold on news that US President Donald Trump was taking the US out of its former nuclear deal with Iran. The President delivered Tuesday on a pledge made in his election campaign to abandon the 2015 agreement and turn up the sanctions on Iran.
Crude oil prices climbed on the news although some commentators said that US sanctions against the country will have much less impact on the country’s oil exports than would a more international move against the agreement.
The Nikkei ended down 0.4% wit the Shanghai Composite and Kospi both lower as their closes approached. The ASX 200 and the Hang Seng both managed gains.
The US Dollar continued firm, especially against the wilting Euro which has been hit by patchy economic data and worries about new political splits in Italy. EUR/USD is in steep decline once more and back at lows not seen since December, 2017
The Japanese Yen didn’t get much of a boost from the day’s only notable economic data, although it did show domestic wages rising at the fastest pace for two decades. Local monetary authorities will be hopeful that this will lead to more consumption and an inflation pickup, but some economists have cast doubt on the sustainability of wage growth.
Gold prices were lower as the markets still price in multiple Federal Reserve interest rate hikes this year following a moderately hawkish performance Tuesday from Chair Jerome Powell.
It’s a pretty calm session for economic data in Europe and North America. Investors will get a look at US mortgage application levels and Canadian building permits but that’s about it.
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— Written by David Cottle, DailyFX Research
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