* Nikkei opens up 1.7 pct, MSCI Asia ex-Japan down 0.1 pct
* Dollar eyes 100 yen, seen matter of time
* G20 accepts Japan reflation policies
By Chikako Mogi
TOKYO, April 22 (Reuters) – Bulls drove Japanese shares to
nearly five-year highs as yen bears clawed at the symbolic 100
yen/dollar door after the Group of 20 gatherings in Washington
all but endorsed the Bank of Japan’s aggressive reflation drive.
The dollar was trading at 99.78 yen, after earlier
rising to 99.89, just below a four-year high of 99.95 yen hit on
April 11.
In a communique after a two-day meeting on Friday, the G20
simply said it would be “mindful” of possible side effects from
extended periods of monetary stimulus, without singling out
Japan as some in the markets had feared.
“Following the G20, players feel comfortable selling the yen
further, and it is just a matter of timing when the symbolic 100
yen level is hit,” said Yuji Saito, director of foreign exchange
at Credit Agricole in Tokyo.
Japan’s Nikkei stock average opened up 1.7 percent,
cheering the G20 outcome as a clear trend for the yen’s weakness
improves prospects for Japanese corporate earnings.
The MSCI’s broadest index of Asia-Pacific shares outside
Japan inched down 0.1 percent after ending a
volatile week with a 0.5 percent drop. Global equities markets
and commodities rebounded late last week after tumbling sharply
on concerns about growth slowdown in the United States and
China.
Australian shares were up 0.1 percent while South
Korean shares opened down 0.2 percent.
With few major events or news scheduled during the session
in Asia, market focus was largely on when the dollar will top
100 yen to renew its four-year peak.
With the euro zone’s economy looking fragile, the U.S.
dollar looked set to strengthen relative to other major
currencies. How far that would go depended on U.S. economic data
rather than factors from Japan, Credit Agricole’s Saito added.
Heavy option barriers were lined up around 100 yen to the
dollar, but once the level is broken the dollar has more upside
as it would trigger stop-loss buying and target 101.45, a 2009
high, he said.
Asian shares were capped on Monday with investors remaining
wary of volatility in riskier assets such as shares and gold
while digesting current developments.
Finance leaders of the G20 club of advanced and emerging
economies also edged away from a long-running drive toward
government austerity in rich nations, rejecting the idea of
setting hard targets for reducing national debt in a sign of
worries over a sluggish global recovery.
That concern was highlighted on Saturday when the
International Monetary Fund’s steering committee said at the
conclusion of the world lender’s spring meeting that monetary
policy alone was not enough to restore confidence in the shaky
global economy. They urged countries to take additional steps to
reinvigorate growth and create jobs.
Data on Friday showed currency speculators raised their bets
against the yen in the week ended April 16, while lifting
positions in favour of the U.S. dollar.
The euro was down 0.2 percent to $1.3055 and traders
expected the single currency to face pressure as a slew of euro
zone economic reports will be released this week.
Italy’s re-election of a president on Saturday has raised
the prospect of an end to the two months of political stalemate
that followed a general election, helping to support the euro.
U.S. crude was steady around 88.01 a barrel.
Spot gold was up 0.2 percent to $1,407.81 an ounce,
well above its lowest in more than two years of $1,321.35
touched last week.
