Nasdaq ends best quarter in 6 years as yen extends drop against dollar

YEN AT 40-YEAR LOWS

After a shaky start, Asian investors pushed tech companies higher on Tuesday.

Seoul’s KOSPI index rose one per cent but was still down from a recent record high touched before a rout last week. The index, which includes chipmakers SK hynix as well as Samsung, soared almost 68 per cent during the quarter.

In Tokyo, the focus was on the yen amid speculation that Japan’s government could intervene in currency markets to push it higher against the dollar.

The yen has fallen to 40-year lows against the dollar and sank as low as 162.67 per dollar amid expectations the US Federal Reserve would lift interest rates this year.

The moves came ahead of US jobs data on Thursday, with analysts warning that a stronger-than-expected reading could fan bets on a Fed rate hike sooner rather than later.

“If the jobs report comes in strong, it could put upward pressure on yields as investors price in higher odds of a July rate hike,” said eToro analyst Bret Kenwell.

An increase in borrowing costs to a 31-year high by the Bank of Japan this month did little to support the yen, with government officials’ warnings of an intervention also falling short.