KUALA LUMPUR, Malaysia (AP) – Asian stock markets were muted Tuesday amid holidays in Hong Kong and South Korea. The yen hit a six-year low as the U.S. dollar strengthened on expectations the Federal Reserve will soon end stimulus and raise interest rates.
KEEPING SCORE: Japan’s Nikkei 225 gained 0.3 percent to 15,752.58 but China’s Shanghai Composite eased 0.1 percent to 2,324.84. Australia’s S&P/ASX 200 rose 0.3 percent to 5,593.50. Stock benchmarks rose in Taiwan and Singapore but fell in Indonesia and Malaysia. Markets in Hong Kong and South Korea were shut for public holidays.
BREAKUP JITTERS: A possible dismembering of Scotland’s centuries-old union with England is alarming international investors and could spell trouble for the United Kingdom, which is Europe’s third largest economy. It would hit Britain’s trade balance and dent its income with oil reserves possibly reallocated back to Scotland. The pound fell more than one percent Monday ahead of the Sept 18 referendum after a poll showed a narrow majority in favor of Scottish independence for the first time.
DOLLAR BULLS: The dollar extended its rally, hitting 106.29 yen, the highest since September 2008. Compared with other major currencies beset by bad economic data or possible further stimulus, the dollar appears the most attractive as the U.S. central bank looks to end stimulus by October and consider hiking interest rates.
THE QUOTE: “The rally in U.S. stocks took a pause overnight amid the dearth of market-moving data, as investors consolidated positions after five weekly gains on US indices. It’s a muted calendar this week,” said CMC Markets analyst Desmond Chua.