Tokyo’s main index closes lower by 0.01% at 20,745.84
Equities are having to weigh up Fed rate cuts and global trade tensions – immediate focus being US-Mexico – and that’s causing for a bit of a mixed tone in Asian trading. Gains have been fleeting over the past hour and we’re seeing stocks reverse early gains as trade sentiment sours hopes of a Fed rate cut later in the year.
It’s hard to really make anything of this so perhaps it’s best to look towards US futures, which are down by 0.1%, as that would be more telling of the way things will play out in the European morning.
USD/JPY continues to hold lower at 108.10 currently as the yen extends gains amid more cautious risk sentiment after US-Mexico talks failed to reach a deal overnight.