By Shiyin Chen - Jul 12, 2010
url: http://www.bloomberg.com/news/2010-07-12/yen-weakens-against-euro-on-japan-elections-asian-exporter-stocks-advance.html
The yen weakened on concern efforts to cut Japan’s government debt will slow after the ruling party lost control of the upper house. Most Asian stocks rose, led by Japanese exporters and commodity producers.
The yen weakened against all 16 of its most-active counterparts at 2:17 p.m. in Tokyo, to 112.16 per euro from 112.01 in New York on July 9. The MSCI Asia Pacific Index was little changed. Standard & Poor’s 500 Index futures fell 0.3 percent. Copper retreated following a 5.5 percent gain last week.
The Democratic Party of Japan won 44 seats in the upper house, less than the main opposition’s 51 seats, making it unlikely Prime Minister Naoto Kan will be able to reduce the world’s largest public debt. Most Asian stocks rose ahead of the start of the U.S. second-quarter earnings season, with S&P 500 companies projected to post profit gains of 34 percent, according to analysts’ estimates compiled by Bloomberg.
“Earnings are the key but it’s going to be very company specific,” Curtis Freeze, chairman of Honolulu-based Prospect Asset Management Inc. with about $1 billion in assets, said in a Bloomberg Television interview. “The yen could actually weaken because there’s going to continued spending by the government and there’s going to be a delay in the consumption tax hike.”
Almost five stocks rose for every four that fell among the MSCI index’s 985 members, with a measure tracking materials stocks accounting for the biggest advance among 10 industry groups. The Nikkei 225 Stock Average fluctuated between gains and losses. China’s Shanghai Composite Index rose 0.7 percent as speculation the government will relax curbs on mortgage lending amid a slowdown in property prices drove gains in developers.
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