Yen Surge Threatens Global Equity Rally

Japanese stocks pared back initial gains as the yen strengthened against the dollar, impacting export competitiveness. Asian markets generally showed positive momentum, following Wall Street`s lead. The rise in the yen, coupled with mixed signals from US Federal Reserve officials regarding interest rate cuts, tempered global risk appetite despite positive US jobless claims data. Investors are awaiting further US economic indicators amidst speculation about the pace of Fed easing. The strong yen also led analysts to lower forecasts for Japanese stock performance.