After a long wait, a big number of currencies in Asia registered a great start this Friday, following the news that the number of coronavirus cases in the United States has surpassed those of China.
As expected, this helped the Japanese Yen strengthen its position, posting gains of more than 1% on the day against the USD, while the NZD and the AUD, often traded as a proxy for the Chinese Yuan registered increases as well.
This entire situation can be considered normal right now, as confidence is finally starting to return to the Chinese market. Beijing continues to keep the country closed for foreign visitors, in their attempt to prevent any imported virus cases, but the CNY seems to be finally back on track.
New signs of improvement for USD/JPY
Considering all the gains the Japanese Yen ‘won’ against the United States Dollar during Friday’s Asian trading session, it can be said that it has finally returned from several week low point. Yes, it still remains under a lot of selling pressure, but the positive data released from Toyko, as well as the easing on the USD safe-haven status, have surely helped a lot.
Generally speaking, the JPY itself is known for being the currency of choice for many traders during such times of uncertainty. Still, let’s not forget that things were a bit different over the past weeks, considering the entire turmoil from Asia, but also the rest of the world.
Shortly after Prime Minister Shinzo Abe announced a $135 billion package for approval, the effect on JPY was obvious, as it boosted traders’ confidence. Also, the Nikkei bounced back as well, with a gain close to 20,000 points on Friday.
There’s hope across Asia
While the markets in Japan are showing signs of improvement and posting gains, there were also some rallies across the whole Asia. Specifically, we’re talking about Shanghai and Hong Kong, both with positive numbers on Friday, as the economy across the continent is showing the first signs of stability.
Currently, analysts expect an even further push from these markets, starting with next week, as they will try to get ahead of the markets in the United States, currently expected to open lower after the big gains on Wall Street from Friday.
Through the next days, we’re looking forward to seeing a positive trend in Asia, following the news coming from China.