FXstreet.com (Barcelona) - Asian markets have traded weaker on Thursday weighed buy concerns about banks and rumours about a rate hike in China. The Euro has declined from year highs, while the Pound holds at high levels.
Tokyo Nikkei Index has dropped 1.2% after a government report showed a 30.7% decline in exports in September, while Hong Kong's Hang Seng Index lost 1.1% and South Korean Kospi Index fell 1.8%. Markets in China, and Taiwan have also traded lower.
Banks have been the biggest losers on Thursday after financial analyst Dick Bove downgraded its rating on Wells Fargo shares, which triggered a sell off on financial shares in Wall Street, aggravated by mixed earnings reports and Fed's comment about the standstill in labour markets.
Euro eases from highs; Pound holds gains
EUR/USD rose further on Wednesday at 14 months high and, from session low at 1.4880 support area, the pair rallied finally through 1.5000 at Wall Street opening, to reach a fresh year-high at 1.5045, although the pair retreated during Asian trade, returning to levels right below 1.5000.
GBP/USD performed a remarkable rally on Wednesday, jumping from 1.6340 low to session highs almost 300 pips higher, at 1.6640. During Asian session, the Pound has remained consolidating between 1.6600 and 1.6640.
USD/JPY recovery from 90.05 low on Oct 20 has extended on Thursday's Asian session with the Dollar appreciating from 90.80 session low to break above 91.30 resistance and reach a 4-week high at 91.45.