Published: Tue, 31 Mar 2009 13:34:50 +0200

Yen Moves Lower Following News of More Stimulus; Downbeat Data

(CEP News) - The Japanese yen is weaker on Tuesday as the government prepares to unveil details of a new stimulus package, and following some downbeat economic data for the region.

On Tuesday, Japanese Finance Minister Taro Aso confirmed that his government is crafting another stimulus package to stimulate the economy, but said its size has not yet been decided.

Also on Tuesday, Japanese Finance Minister Kaoru Yosano said the government would consider the purchase of exchange-traded funds only under "extraordinary" cases.

The comments followed news that the Japanese February unemployment rate rose to 4.4% versus an expected 4.3% level and follows January's 4.1% rate.

Also on Tuesday (Monday EDT) the Japanese Nomura/JMMA manufacturing PMI rose to 33.8 in March despite expectations for 32.0 and previous 31.6 level.

In equities, Asian markets were mixed, with the Japanese Nikkei closing down 127 points to 8110 and the Hang Seng Index up 120 points to 13576.

Data taken at 7:31 a.m. EDT.

USD/Yen up 1.20 points to 98.45

Euro/Yen up 2.69 points to 131.06

CAD/Yen up 1.42 points to 78.48

By Erik Kevin Franco, efranco@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca