Economy

As Japanese stocks approach record levels last seen in the 1989 bubble-era, valuation metrics suggest they are still far from overpriced compared to historic levels and global peers.

Toyota Motor, the world’s biggest automaker, did not reach an immediate agreement with its union over demands for hefty pay hikes on Wednesday but will continue talks in coming days, raising doubts about current expectations for wage talks.

Asian shares were pinned below 1-1/2 month highs on Tuesday as even a larger-than-expected interest rate cut in China failed to excite investors jaded at the lack of bigger stimulus measures.

Chinese electric vehicle maker Xpeng (NYSE:XPEV) said it would hire 4,000 this year and invest millions in artificial intelligence, as it seeks to survive what it describes as a “bloody sea” of competition in the world’s largest auto market.

The dollar was steady on Friday, on track for its fifth straight weekly gain, as investors take stock of economic data and firm expectations of the Federal Reserve cutting rates in June, while the yen traded at the psychologically key 150 per dollar level.

SINGAPORE (Reuters) – Asian stocks rose on Thursday, with the Nikkei breaching a new 34-year peak, while the dollar took a breather near a three-month high as markets assess when the Federal Reserve is likely to start its easing cycle after a run of strong economic data.

Trading was largely subdued in Asia with markets in China and Hong Kong still closed for the Lunar New Year holidays and traders on guard ahead of Tuesday’s release of consumer prices data in the world’s largest economy.

The yen was little changed at 149.395 per dollar after dipping to 149.495 earlier for the first time since Nov. 27. It slumped 0.76% in the previous session, and is set for a 0.68% slide this week.

European traders looking to Asia for direction are going to be pulled in two directions, with Hong Kong led lower by property shares as it limped into the Lunar New Year break, while Japan powered to a new post-bubble, 34-year peak.

Market participants believe Beijing is striking a delicate balancing act to support the economy. Signs of persistent deflationary pressure calls for more stimulus measures as fast falling prices have raised real borrowing costs, but aggressive monetary easing could revive depreciation pressure on the Chinese currency and trigger capital outflows.