Yen Surges Amid Tensions and Rising Oil Prices
Asian stocks wavered on Tuesday as the yen surged to its strongest level since February 18, reaching 153.51. The Nikkei 225 index in Japan fluctuated between gains and losses before edging up 0.2%. MSCI's Asia-Pacific shares outside of Japan rose by 0.2%, led by a 1.2% gain in the KOSPI.
The yen's increase was driven by a mixed batch of regional economic data and fresh Iranian threats in the Persian Gulf, which pushed oil prices higher for a third day. Brent crude futures edged up 0.04% to $97.04 a barrel after hitting a six-week high on Monday following Iran's threat to retaliate against any new attacks by targeting energy infrastructure across the Gulf.
Traders are pricing an implied 60% probability of a 25-basis-points hike at the next Federal Reserve meeting on September 16, according to the CME Group's FedWatch tool. The U.S. dollar index was trading around a two-week low of 98.82.