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Yen Falls as Havens Retreat; Stocks Climb in Asia: Markets Wrap – Bloomberg

The yen declined as havens retreated after the worst-case scenarios for North Korea and hurricanes in the U.S. didn’t eventuate, while stocks inched higher in Asia following a record-breaking Wall Street session.

Futures on the S&P 500 Index advanced with equities in Australia, South Korea and Hong Kong. Japan markets are closed for a holiday on Monday. The S&P 500 climbed above 2,500 for the first time on Friday and the Dow Jones Industrial Average chalked another record close as investors shrugged off the latest North Korean missile test. The dollar bounced after declining on Friday when U.S. retail sales raised concerns about the strength of the economy.

“With the latest missile test we really didn’t see much of a market footprint at all,” Todd Elmer, Singapore-based head of G-10 FX strategy for Asia ex-Japan at Citigroup Inc., told Bloomberg Television. “What that signals is that investors are not inclined to extrapolate that provocation into any major flareup in geopolitical tension.”

With weaker readings also on factory output and consumer confidence in August the focus now turns to the U.S. Federal Reserve meeting this week, where officials are expected to announce the start of the reduction of the central bank’s $4.5 trillion balance sheet, while keeping the benchmark interest rate unchanged. With the outlook for the U.S. economy clouded by Hurricane Harvey investors will be tuning in to a fresh round of speeches by Fed Chair Janet Yellen and regional Fed presidents for clues on the central bank’s next moves. The Bank of Japan is also expected to stand pat when it meets to discuss its rate policy later in the week.

Yen Falls as Havens Retreat; Stocks Climb in Asia: Markets Wrap – Bloomberg}

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