Asian markets were broadly lower on Wednesday morning as the yen bounced back on political concerns regarding U.S. President Donald Trump. The Nikkei fell 0.54 percent as of 6:00 a.m GMT on Wednesday. Hong Kong’s Hang Seng Index was down 0.27 percent. China’s Shanghai Composite traded within range, down only 0.06 percent while the Shenzhen Composite posted gains of 0.34 percent in the morning session. South Korea’s Kospi traded flat on Wednesday morning.
The dollar was down 0.50 percent against the yen to 112.54. The dollar also weakened against a basket of key trade partners, with the dollar index down to 98.087 .DXY in early Wednesday trade, a notable drop from levels above 99 last week.
Traders remain concerned over President Trump as the investigation continues into his sharing of classified intelligence with Russian officials, an action which Trump continually defends, saying yesterday that he had the “absolute right” to share the information. Trump is also under suspicion for allegedly asking then-FBI Director James Comey to cease his investigation of former national security adviser Michael Flynn.
Australian Success
The Australian dollar strengthened against the greenback for the sixth consecutive session on Wednesday, to trade at $0.7412. On Wednesday the S&P ratings agency affirmed Australia’s triple-A rating, noting that low public debt and a “wealthy and resilient economy” abound, despite concerns about the government’s ability to recreate a budget surplus. Australia is one of only 10 countries to maintain an AAA credit rating from the top three agencies.
Nevertheless, the S&P warned of a negative outlook for the country, noting a risk for low inflation and stagnant wage growth that could hamper the country’s fiscal progress.