Japan’s Nikkei 225 share average hit a 1-month high no Tuesday as a continually weakening yen bolstered the export sector and traders enjoyed optimism from Wall Street’s continued bull run. The Nikkei gained 0.3 percent on Tuesday morning to hit 19,925.20, near the 20,000 threshold traders are eyeing which will test the market’s upside.
Speaking on Monday about Japan’s economy, Japanese Prime Minister Shinzo Abe said that he expects there to be increased wage growth moving forward, and he noted that companies will have to improve their working conditions if they are serious about hiring solid candidates. Abe’s economic policies, dubbed Abenomics, has long posited that higher corporate earnings would start a cycle of consumerism which would support higher wages. Though this vision hasn’t yet materialized, Abe remains hopeful that positive data will crystallize his plan.
Currencies and Commodities
The dollar gained 0.4 percent against the yen on Monday and eased slightly on Tuesday morning to trade at 113.45 as of 6:40 a.m GMT. The euro gained 0.2 percent agains the dollar, trading at $1.0994.
Oil prices continued to rally following the recommitment to production cuts, with Brent crude gaining nearly 9 percent over the past weeks, a jump that analysts find questionably sustainable. Brent gained 0.4 percent on Tuesday morning to trade at $52 per barrel. U.S. WTI crude futures also gained 0.4 percent to trade at $49.03 per barrel. However, the United States seems to be ramping up production even as leading producers are cutting back, a move which may undermine OPEC’s efforts to buoy prices.