- Title: Weakening yen suggests Clinton debate victory - Tokyo analyst
- Date: 27th September 2016
- Summary: TOKYO, JAPAN (SEPTEMBER 27, 2016) (REUTERS) STAFF WORKING AT GAITAME.COM FOREX BROKER STAFF WORKING IN FRONT OF MONITOR SHOWING LIVE STREAM VIDEO OF U.S. PRESIDENTIAL ELECTION DEBATE U.S. AND JAPANESE FLAGS ON DISPLAY IN FRONT OF MONITOR SHOWING U.S. PRESIDENTIAL CANDIDATE, DONALD TRUMP MONITOR SHOWING DOLLAR BEING TRADED AT 100.540 YEN AND BENCHMARK NIKKEI AVERAGE AT 16396.94 STAFF MEMBERS LOOKING AT MONITORS U.S. AND JAPANESE FLAGS ON DISPLAY IN FRONT OF MONITOR SHOWING U.S. PRESIDENTIAL CANDIDATE, HILLARY CLINTON MONITOR SHOWING DOLLAR BEING TRADED AT 100.790 YEN STAFF WORKING / GENERAL MANAGER OF GAITAME.COM RESEARCH INSTITUTE, TAKUYA KANDA, STANDING (SOUNDBITE) (Japanese) GENERAL MANAGER OF GAITAME.COM RESEARCH INSTITUTE, TAKUYA KANDA, SAYING: "The apparent move of Tokyo's foreign currency exchange markets in response to the debate was a weak yen and a strong peso. I think this shows that traders believe the risk of Donald Trump becoming U.S. President has been lowered after the debate. Tokyo's stock market also reduced its previous loss." KANDA TALKING (SOUNDBITE) (Japanese) GENERAL MANAGER OF GAITAME.COM RESEARCH INSTITUTE, TAKUYA KANDA, SAYING: "These moves show that investors believe Trump becoming U.S. President would negatively affect Japan's economy." STAFF WORKING (SOUNDBITE) (Japanese) GENERAL MANAGER OF GAITAME.COM RESEARCH INSTITUTE, TAKUYA KANDA, SAYING: "The trend of foreign currency exchange markets will be undetermined until the final election result comes and, further on, the Secretary of the Treasury is selected, which investors will have to keep their eyes on." MONITORS, ONE OF WHICH SHOWS U.S. PRESIDENTIAL ELECTION DEBATE STAFF WORKING
- Embargoed: 12th October 2016 04:45
- Keywords: Japan yen USA presidential Hillary Clinton Clinton Donald Trump Trump debate
- Location: TOKYO, JAPAN
- City: TOKYO, JAPAN
- Country: Japan
- Topics: Government/Politics,Elections/Voting
- Reuters ID: LVA00151CBDC7
- Aspect Ratio: 16:9
- Story Text: The first U.S. presidential debate was watched closely in Japan on Tuesday (September 27), including by staff at a foreign currency exchange broker in Tokyo where a live stream of the event was on show.
The general manager of Gaitame.com Research Institute, Takuya Kanda, said a weakening yen and surging peso suggested Hillary Clinton was ahead in the debate against her Republican rival Donald Trump.
Japanese shares recouped early losses and the dollar edged away from a one-month trough against the yen as the debate was broadcast or live streamed from 10:00 a.m. in Japan (0100 GMT).
"The apparent move of Tokyo's foreign currency exchange markets in response to the debate was a weak yen and a strong peso," Kanda said. "I think this shows that traders believe the risk of Donald Trump becoming U.S. President has been lowered after the debate. Tokyo's stock market also reduced its previous loss."
Japanese stocks were down on Tuesday morning, but were off the seven and a half-week lows hit in early deals amid some volatility the debate caused. The benchmark Nikkei was down 0.3 percent at 16,490.41, recovering from an early morning low of 16,285.41, the weakest level since August 5.
The dollar also bounced back from earlier losses to post gains against the yen in Asian trade, suggesting markets regarded Clinton as the winner of the debate. The dollar was up 0.4 percent at 100.745 yen after slipping earlier to 100.085, its lowest since late August.
Markets have tended to see Clinton as the candidate of the status quo, while few are sure what a Trump presidency might mean for U.S. foreign policy, trade and the domestic economy.
"These moves show that investors believe Trump becoming U.S. President would negatively affect Japan's economy," Kanda said.
However, investors will have to keep their cautious eyes on the election result and the selection of the next U.S. cabinet, Kanda added.
Opinion polls have shown the two candidates in a very tight race, with the latest Reuters/Ipsos poll showing Clinton ahead by 4 percentage points, with 41 percent of likely voters. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None
