Into Japan’s Elections
The yen has been the main mover this morning in Asia. Earlier, investors were buying USDJPY above 100 on the expectation that Sunday’s upper house elections would result in the ruling Liberal Democratic Party not only winning 63 seats to form a majority with its coalition partners but exceeding the 70 seats needed to govern by itself in the second chamber of the Diet. However, subsequent weakness in Asian semi-conductor stocks caused by weak results at a Taiwanese producer has dragged the Nikkei into negative territory. This has led to USDJPY dipping below 100.
Read the full report: UBS