GLOBAL MARKETS-Yen near 15-year high vs dollar; stocks, oil up

* Yen edges near 15-year high against dollar

* World stocks, crude prices rise

By Dominic Lau

LONDON, Sept 9 (BestGrowthStock) – The yen edged near to a 15-year
high against the dollar on Thursday as investors bet on the
Japanese authorities are not yet ready to curb the currency’s
strength, while world stocks and crude prices rose.

Japan’s Finance Minister Yoshihiko Noda said the ministry
was conducting simulations on forex intervention, though the
Japanese currency hardly budged as the perception remains that
Tokyo is unlikely to intervene until the U.S. currency falls
near 80 yen.

Noda’s comments were also undermined as Bank of Japan
Governor Masaaki Shirakawa said he did not talk about currencies
and monetary policy at a government meeting. [ID:nTKV006408]

“Comments from Japanese authorities indicated they are not
in a hurry to intervene, so new (dollar) lows should be tested,”
Roberto Mialich, currency strategist at UniCredit in Milan,
The dollar fell 0.2 percent to 83.71 yen (JPY=: ) on Thursday
to near a 15-year low of 83.34 yen hit on trading platform EBS
on Wednesday, and is down 9.9 percent against the Japanese
currency this year which is buoyant on the back of global growth

The euro eased 0.2 percent to 106.45 yen (EURJPY=: ), hovering
near a nine-year low. The single currency pared losses against
the dollar to trade flat at $1.2717, helped by comments from
European Central Bank Governing Council member Yves Mersch that
the euro zone was on the brink of a sustainable recovery.


Mersch’s remarks also helped European shares, with the
FTSEurofirst 300 (.FTEU3: ) up 0.4 percent, while Germany’s
VDAX-NEW volatility index (.V1XI: ), a gauge of investors’ fears,
eased 2.3 percent.

“Equity markets are getting used to the reality that
economies are slowing quite significantly. The question is how
much growth is required now to support equity markets,” said
Bernard McAlinden, investment strategist at NCB Stockbrokers in

Illustrating the current dilemma, Deutsche Bank (DBKGn.DE: )
board member Juergen Fitschen said the risk of a credit crunch
in the real economy has not abated as demand for loans rises,
spurred by a rebound in the aftermath of the financial crisis.

World stocks measured by MSCI All-Country World Index
(.MIWD00000PUS: ) put on 0.3 percent. The index, which carried a
12-month forward price-to-earnings of 11.23 against a 10-year
average of 15.22, is down 2.5 percent this year.

In Asia, Japan’s Nikkei average (.N225: ) rose 0.8 percent.

Oil (CLc1: ) rose to trade above $75 a barrel, drawing
strength from an initial report of falling U.S. inventories.

“There are tentative signs of improving demand from what we
saw last week,” said Stefan Graber, a commodities analyst with
Credit Suisse in Singapore. “That could suggest demand
conditions are firming indeed.”

Gold (XAU=: ), however, steadied, and yields on benchmark
10-year German Bunds (DE10YT=RR: ) rose 2 basis points to 2.327
percent, while those on 10-year U.S. Treasuries (US10YT=RR: ) were
up 2 basis points at 2.6735 percent.
(Additional reporting by Tamawa Desai, Brian Gorman and
Marie-Louise Gumuchian in London; Editing by Ron Askew)

GLOBAL MARKETS-Yen near 15-year high vs dollar; stocks, oil up