Sterling weakens on Brexit concerns, yen falls after Japan data

The yen weakened after being weighed down by disappointing data out of Japan. Private sector surveys painting a bleaker picture of business conditions as the flash manufacturing PMI number came in weaker than expected for the month of February.

The yen fell 0.3 per cent versus the dollar to trade at Y112.92, making it the worst-performing Asian currency in morning trade. However, the currency is still hovering close to a 15-month high of Y110.99 hit earlier this month.

Sterling was in focus this morning after news that UK Prime Minister David Cameron announced the date of a referendum on whether the UK should leave or stay in the European Union. The date is set for June 23. Brexit concerns have weighed on the pound recently. In Asian trade, sterling was down 0.9 per cent at $1.4279 and was the worst-performing major currency.

Equity markets seemingly brushed aside the weak Japanese data today as oil prices climbed higher.

Brent crude, the international benchmark was up 1.1 per cent at $33.38 a barrel after falling 1.1 per cent last week, while WTI crude, the US benchmark, was 1.2 per cent higher at $29.99 after last week’s 0.7 per cent gain.

The Tokyo Nikkei was 0.6 per cent higher in morning trade as the yen weakened, while Australia’s S&P/ASX 200 was up 0.7 per cent. Hong Kong’s Hang Seng was up by 0.9 per cent, while the Shanghai Composite rose 2.1 per cent and the Shenzhen Composite was up 1.8 per cent.

Gold was down 0.5 per cent at $1,220.15 an ounce.

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