By Wayne Cole
SYDNEY (Reuters) – The U.S. dollar gained on the yen in Asia on Monday as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while better U.S. economic news and the promise of central bank stimulus lent support to equities. The Turkish lira was quoted around 2.9675 Ankara said it was in control of the country and economy and widened a crackdown on suspected supporters of the failed military coup, taking the number of people rounded up in the armed forces and judiciary to 6,000. The initial reaction of investors to the coup had been to bid up safe havens such as the Japanese yen, but that was quickly unwinding. The dollar was at 105.40 yen Likewise, the euro had steadied at $1.1058 MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was flat having reached its highest in almost nine months last week. Australia <.AXJO> added 0.2 percent and South Korea <.KS11> was little changed. The E-mini futures contract for the S&P 500 was up 0.1 percent Prices for U.S. Treasuries were a fraction lower with yields on the 10-year note edging up to 1.56 percent In commodity markets, spot gold Oil prices were little changed at first. Brent crude One mover was the New Zealand dollar which slipped when domestic inflation data showed a surprisingly soft rise of 0.4 percent in the year to June.
The kiwi slid half a U.S. cent to $0.7086 Investors are also wagering on policy easings from the Bank of England and Bank of Japan in the next month or so, while few see much chance of the Federal Reserve hiking U.S. rates anytime soon.
(Reporting by Wayne Cole; Editing by Richard Pullin and Eric Meijer)