Asian markets were mixed following strong gains on Wall Street, with Tokyo enjoying a significant bump due to the US dollar's rise against the yen.

In Tokyo, stocks climbed as the US dollar - trading at its strongest levels in two weeks - rose into the Y108 range, with risk sentiment lifted by encouraging Chinese manufacturing data and solid readings for Eurozone business activity on Thursday.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated.

"The weaker yen should naturally benefit Japan stocks, and help to highlight the fact that shares are looking cheap from many perspectives," said Mutsumi Kagawa, senior global strategist at Tokai Tokyo Research Center.

Despite Tokyo's rise, investors will be keeping a close eye on the situation in New York where officials on Friday confirmed the city's first known case of the Ebola virus.

 

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New Home Sales (USD)

Ebola Causes Dollar to Fall

 

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The dollar was lower against the yen in Asia trade Friday, with news of a new Ebola patient in New York prompting investors to switch to the perceived safety of the Japanese currency.

The situation cleared to some extent, as a fresh round of global data including Eurozone PMI reduced fears about the global economic slowdown, causing US Treasury yields to rise.

However, news of the Ebola patient fed risk aversion, prompting buying of the yen, considered a safe harbor in uncertain times.

A doctor who returned to New York City recently after treating Ebola patients in West Africa tested positive for the virus Thursday. New York Mayor Bill de Blasio said authorities had been preparing for an Ebola case for weeks and followed new protocols “very precisely.”

In addition, investors were reluctant to make major moves ahead of big events such as the outcome of European stress tests scheduled for Sunday, as well as the policy meetings of the Federal Open Market Committee and the Bank of Japan next week.

 

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Amazon Lost Around $3billion Recently

 

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Amazon, the US retail giant, has revealed it’s lost nearly $500m in the past three months, the largest amount in its history.

Jeff Bezos, Amazon’s chief executive and founder, has authorized the company to spend tens of millions of dollars developing drones, which could form the backbone of a new delivery network, and much more on new servers for Amazon Web Services, its online data storage business.

In the past, Amazon’s investors have been patient with Mr Bezos’ strategy, on the basis that any money it spends on growing its market share now will lead to riches down the line, on a par with Apple and Google which make billions of dollars every quarter.

However, Amazon’s losses have widened, stretching their patience to breaking point.

 

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Asian stocks fell Thursday after another slump in oil prices dragged Wall Street lower and China's manufacturing output grew at the slowest pace in five months.

CHINA ECONOMY: A preliminary reading of China's massive manufacturing industry for October provided mixed messages.

ENERGY: Oil prices extended losses after the US Energy Department reported an increase in oil inventories that was far larger than expected.

BIG EARNNGS: Later in the global day, major U.S. companies such as Microsoft, 3M, Amazon.com, Caterpillar and United Continental will be releasing earnings reports. Asian companies, including major Japanese names such as Toyota Motor Corp., are releasing their reports later in the month.

 

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RBA Gov Stevens Speaks (AUD)

Overnight Rate (CAD)

 

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Coca-Cola said it plans to slash costs by $3 billion a year after the world's biggest beverage maker reported disappointing sales on flat soda volume.

The maker of drinks including Powerade, Sprite and Diet Coke said the savings will help fund the marketing that's needed to drive up sales.

As sales of their drinks have slowed, Coca-Cola and rival PepsiCo have both sought to improve their financial performance by trimming costs. In the US, they're also trying to boost sales by pushing "mini-cans" positioned as a way to control portions.

 

Trading Tip: This can greatly affect the Coca Cola share. Keep an eye out for more news.

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The dollar was flat against the yen on Friday, with the dollar pressured by weakness in the Nikkei Stock Average as a result of investors trying to avoid risk.

The dollar maintained its overnight strength against the yen earlier in the session, following bright US indicators such as weekly unemployment claims, industrial output and the Federal Reserve Bank of Philadelphia’s business activity index.

But the dollar gave up earlier gain later on as stock market weakness invited buying of the Japanese currency, which is considered a safe haven in times of financial instability.

 

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Asia Stocks and Dollar Stabilize

 

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Asian stocks regained some stability on Wednesday following days of big losses, but the feeling remained fragile as not so good Chinese inflation data and sadness in the euro zone economy added to signs of an uncertain global economic recovery.

The dollar steadied after disappointing data out of Germany. “For now the market has calmed and there's some short relief. It's a natural rebound," said Takashi Hiroki, chief strategist at Monex in Tokyo.

Concerns over faltering global growth triggered a bruising selloff in global equity markets in the past week as a run of weak data showed no signs of lessening.

 

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The price of crude oil fell to a new three-year low Monday as a split between the world’s most important producers on how to share the pain of lower prices becomes increasingly apparent.

Saudi Arabia is ready to accept a price of $80, according to a weekend report.

Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries, the cartel which produces a third of the world’s oil supply and essentially keeps the balance of supply and demand in the market. As Saudi Arabia can undercut almost every other country if it wants to, it has a huge influence on regulating OPEC’s overall supply.

The price of the world’s most important commodity is under pressure from both directions: demand is weakening as the European and Chinese economies slow down, while global supply is increasing as Iraqi and Libyan exports rebound from war-related disruptions. In addition the US pumps ever more oil from shale deposits while the long-term demand outlook is also looking rockier, because of new technologies such as electric cars.

 

Trading Tip: If the situation ni Europe and Asia won't get better soon, we might see the oil's price keep declining.

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iPhone 6 Helps China's Export

 

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The yen rose to a one-month high against the dollar and traded near 11-month peaks against the euro on Monday, as investors turned cautious on concerns about the health of the global economy.

With market holidays in Tokyo and New York also boosting instability, the dollar dropped after Federal Reserve officials warned at the weekend that if the global recovery stumbled, it could delay an increase in US interest rates.

The euro rose 0.3% against the dollar but was slightly lower against the yen.

European Central Bank council member Ewald Nowotny said the euro was very likely to keep weakening against major currencies.

 

Trading Tip: If the dollar will keep declining against other currencies, the gold might rise as a result.

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China’s slowing economy received a boost from faster export growth in September, with external demand spilling over to increase imports of goods such as the iPhone 6.

Exports increased 15.3% from a year earlier, the biggest increase since February 2013. Imports rose 7%, against projections for a 2% decline, leaving a profit of about $31 billion, data from the Beijing-based customs administration today showed.

Export demand is helping China weather a property drop. Global view is becoming more clouded, with Federal Reserve officials highlighting rising concerns about the improving US economy’s ability to withstand foreign weakness.

 

 

Trading Tip: Chinese stocks might be at a rise due to the increase in export.

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