Asia Market News
In Asia stocks gained as some fears that Britain would vote to leave the European Union were lowered on Monday, boosting a recovery in both sterling and investors’ taste for risk assets. The Nikkei rose 2.4% to 15,966.72. Exporters gained ground, after the dollar rose against the yen. Toyota Motor Corp (NYSE:TM) rose 2.3%, Honda Motor Co (NYSE:HMC) was up 2.4% and Panasonic Corp (T:6752) jumped 2.7%.
Currency Market News
Sterling rallied early on Monday as momentum swung in favour for Britain to remain in the European Union just days ahead of a referendum, helping underpin risk sentiment which in turn weighed on the safe-haven yen. The GBP/USD climbed 0.9% to $1.4483, extending a recovery from last week’s two-month trough of $1.4013. The USD/JPY climbed 0.6% to 104.68 yen, while the EUR/USD was up 1.1% to 118.72 yen. The EUR/USD also edged up 0.5% to $1.1333.
Commodity Market News
Crude oil extended gains in Asian trading on Monday as a weaker dollar and easing worries over Britain’s possible exit from the European Union helped support crude prices. London Brent crude for August delivery was up 48 cents at $49.65 a barrel, after settling up 4.2%, at $49.17 on Friday. NYMEX crude for July delivery, which expires on Tuesday, was up 55 cents at $48.53 a barrel, after closing up 3.8%, on Friday. Gold fell as the latest ebb in risk aversion dented investor demand for safe-haven assets. Spot gold was down 1.2% at $1,282.73.
US Market News
In the US, stocks ended lower on Friday as Apple dragged down major indexes and investors girded for Britain’s vote next week on its European Union membership. The S&P 500 lost 0.33%, to 2,071.22. Apple shares (NASDAQ:AAPL) fell 2.3%. Apple said its iPhone 6 and 6 Plus were still available for sale in China after Beijing’s intellectual property regulators barred sales, saying the designs had infringed a Chinese company’s patent. The healthcare sector was the biggest laggard, falling 1.1%, as Merck (NYSE:MRK) and Johnson & Johnson (NYSE:JNJ) declined.
Bond Market News
U.S. benchmark Treasury yields rose on Friday for the first time in nearly two weeks as investors repriced the odds that Britons will vote next week to exit the European Union, and as UK politicians halted campaigning on the referendum following the killing of member of parliament Jo Cox. The U.S. Treasury 10-year note yield rose to as high as 1.6610 percent, pulling back sharply from a four-year low of 1.5180 plumbed on Thursday. The 10-year Japanese government bond yield also hovered significantly above a record low touched last week.
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