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Global Markets: Yen under pressure, Asian stocks subdued

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The yen plumbed a 2-1/2 year low against the dollar on Monday. (Reuters) The yen plumbed a 2-1/2 year low against the dollar on Monday. (Reuters)
SummaryThe yen plumbed a 2-1/2 year low against the dollar on Monday.

The yen plumbed a 2-1/2 year low against the dollar on Monday, grabbing the Asian spotlight amid subdued trading for the region's stock markets, with the focus on Japan's central bank as it faced unrelenting political pressure to deliver bold stimulus. Prime Minister Shinzo Abe on Sunday said the Bank of Japan (BOJ) must set a 2 percent inflation target and make it a medium-term, not long-term, goal to show markets it was determined to pursue bold monetary easing to end nearly two decades of deflation.

His comments emboldened yen bears, who took a fresh swipe at the currency. That saw the U.S. dollar hit a high of 89.67 yen , a level not seen since mid-2010, while the euro came within a whisker of 120.00 yen, scaling a 20-month peak."The confirmation that there's going to be a push for a new (BOJ) governor, that new governor is going to have a mandate of

2 percent inflation, that plus the fiscal stimulus is a major negative for the yen," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore.

In contrast, equity markets had little news to go on, and MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed, remaining near a 17-month

peak set on Friday.

Tokyo markets were closed for a public holiday.Having staged a 2-percent rally at the start of the year on growing optimism about the health of the global economy, stock markets appeared to be pausing for confirmation of a brighter global growth outlook.

Australia's benchmark S&P/ASX 200 index rose 0.3 percent, Hong Kong's Hang Seng index advanced 0.4 percent and South Korea's KOSPI gained 0.2 percent, reversing earlier losses.

"The KOSPI will continue to be rangebound before U.S. housing data and China's GDP data are released later this week," said Kim Joo-yong, an analyst at Bookook Securities.

Analysts at HSBC believe global developments this week will support demand for riskier assets, with U.S. and Chinese data likely to show further momentum in the world's two biggest economies."In addition, the Fed speaker calendar is dominated by doves in the early part of the

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