Nikkei futures fall as yen holds gain on Ukraine; platinum rises
Australia (Apr 28) Japanese index futures dropped as the yen held near a one-week high versus the dollar amid prospects Russia will be subject to new sanctions with tensions over Ukraine intensifying. Gold maintained gains with silver and platinum as Australian bonds followed Treasuries higher.
Nikkei 225 Stock Average futures were bid on the Osaka pre- market 1 percent below their close in Japan April 25, while New Zealand stocks fell. Standard & Poor’s 500 Index futures added 0.1 per cent after Internet stocks led a 0.8 per cent drop in the gauge April 25. The yen was at 102.17 per dollar after climbing the most of 31 peers last week.
Gold was steady after three days of gains as silver and platinum rose at least 0.2 per cent. Yields on 10-year Australian bonds fell two basis points. The US and European Union will slap new sanctions on Russia as soon as today as the crisis over Ukraine escalates amid the detention of international observers by pro-Russian separatists.
In South Korea, the prime minister resigned over the government’s failure to manage the “Sewol” ferry disaster. Japan is projected to report faster retail-sales growth for March today, while in the US, pending home sales data is due with the Federal Reserve scheduled to meet later in the week. “Further sanctions on Russian companies and individuals close to President Vladimir Putin are expected in short order,” Sharon Zollner, a senior economist at ANZ Bank New Zealand Ltd. in Auckland, wrote in a client note e-mailed today. “Russia and the EU are caught in a situation of mutually assured economic damage from serious sanctions, given the reliance of several European countries on Russian gas supplies.” Putin’s circle The new round of sanctions will be focused on people in Putin’s inner circle “who have a significant impact on the Russian economy,” Deputy White House National Security Adviser Tony Blinken said in a TV interview yesterday.
Representatives from the 28 EU nations will meet today to widen a list of people subject to asset freezes and travel bans, an official from the bloc who didn’t want to be identified said at the weekend.
Russia has stoked tensions in Ukraine by threatening military maneuvers and by taking “no concrete steps” to implement an April 17 accord meant to diffuse the crisis, the Group of Seven nations ― the US, Japan, Canada, the UK, France, Germany and Italy ― said in an April 25 statement. The separatists released one of the 11 captured Organization for Security and Cooperation in Europe inspectors, the Russian state-run newswire RIA Novosti reported yesterday.
Nikkei 225 futures were bid at 14,320 by 8.05am local time on the pre-market, from 14,460 April 25. They were unchanged at 14,330 on the Chicago Mercantile Exchange following a 0.6 per cent drop at the end of last week. The Nikkei 225 lost 0.6 per cent last week. The yen, regarded as a haven by many investors, climbed 0.3 per cent against the dollar last week, as higher-yielding currencies from South Africa to
Australia retreated. Japan’s currency was little changed today at 141.39 per euro after gaining 0.2 per cent April 25. The Australian dollar was steady at 92.75 US cents following a 0.6 per cent drop last week. Retail sales in Japan probably rose 6 per cent in March, after posting 0.3 per cent growth in the previous month, according to the median of 15 economists’ estimates before today’s report. Gold, oil Gold was little changed at US$1,303.72(RM4,263.16) an ounce after gaining 0.7 per cent last week. Silver extended its advance, rising 0.2 per cent to US$19.72 an ounce after climbing 0.4 per cent last week, while platinum added 0.3 per cent today. West Texas Intermediate crude oil advanced 0.2 per cent to US$100.80 a barrel, after sinking 2.7 per cent last week in the worst decline since mid-March.
