- Yen Climbs While Chinese Shares Slump; Lira Soars
The yen strengthened while stocks were mixed as lingering geopolitical concerns offset data showing China’s economy accelerated for a second month. The lira jumped after Turkey voted to hand the president sweeping authority.
The yen extended gains at a five-month high amid persistent concern over the situation with North Korea. The lira jumped as much as 2.4 percent after the referendum gave Recep Tayyip Erdogan greater sway over fiscal policy. Chinese shares tumbled even as the country’s GDP strengthened, while Japanese stocks rose amid speculation recent selling was overdone. Trading was light with many markets still shut for the Easter holiday.
Investors have been jittery amid an escalation in geopolitical tensions this month. While North Korea’s failed ballistic missile launch on Sunday eased the risk of imminent retaliation, it hasn’t prompted the Trump administration to deviate from its plans for dealing with Pyongyang. U.S. Vice President Mike Pence, visiting troops stationed along the North Korean border, said “all options are on the table.”
The Korean situation overshadowed economic reports from China showing gross domestic product increased 6.9 percent in the first quarter from a year earlier, while March data on retail sales and industrial output further cemented a rebound. Meanwhile, the approval of Turkey’s most radical political overhaul since the republic was founded 93 years ago spurred optimism that Erdogan will safeguard security and kickstart the economy.
Here’s what investors are watching this week:
- Australia, New Zealand and Hong Kong were closed Monday, as are most major European markets. The U.S. is set to resume trading.
-
Pence, in addition to visiting South Korea, will also travel to Japan, Indonesia, Australia and Hawaii in his first official trip to the Asia-Pacific region. He’ll emphasize Trump’s continued commitment to U.S. alliances and partnerships.
-
The annual spring meetings of the World Bank Group and the International Monetary Fund take place in Washington.
- Earnings season is ramping up. Companies reporting this week include Bank of America Corp., Goldman Sachs Group Inc., International Business Machines Corp., Netflix Inc., Heineken NV and Unilever.
