Yen higher after upbeat Japanese data

Yen higher after upbeat Japanese data

26 June 2015, 09:24
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The dollar slipped lower against the yen on Friday, after the release of upbeat economic reports from Japan and as mounting concerns over Greek debt talks supported safe-haven demand. 

USD/JPY was last at 123.38, edging down 0.20%.

Earlier, official data earlier signaled that Japan's household spending climbed 2.4% in May, exceeding expectations for a 2.2% gain, after a 5.5% drop in April.

Another data showed that Japan's consumer price index rose by an annualized rate of 0.5% last month, more than the expected 0.4% uptick, after an increase of 0.6% the previous month.

Tokyo's Nikkei Stock Average slipped 0.1%.

Elsewhere in Asia, China’s stock markets dropped toward bear territory on Friday, a sharp turnaround after a year of strong gains.

China’s largest Shanghai market was off almost 20% from its recent high, while the second-largest Shenzhen market dropped more than 20%, entering bear-market territory. Since hitting a record high earlier in the month, China's startup stocks have lost a quarter of their value.

Australia’s S&P ASX 200 was lower 1.5%, led down by the energy sector, after U.S. government data showed a surprise increase in inventories of refined fuels like gasoline. That led oil prices back below $60 a barrel late Thursday in New York. Brent crude has made some gains in Asia trade Thursday, and is currently at $63.60.

In the meantime, the euro was lower Friday, as talks between Greece and its creditors brought no agreement on Thursday.

EUR/USD was last at 1.1197 losing 0.04%.

Following Thursday’s 24-hour negotiating marathon and before talks between finance ministers restart on Saturday, European politicians will be working frantically on a deal between Greece and its international creditors.

These weekend discussions will be crucial, as Athens has to make a €1.6bn payment to the International Monetary Fund (IMF) on Tuesday.

Meanwhile, investment bank JP Morgan believes that if no deal is reached by Sunday night, banks in Greece will stay closed on Monday.
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