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What the Pros Say: Yen is King

CNBC.com
Monday, 27 Oct 2008 | 9:09 AM ET

Japanese stocks tumbled to 26-year lows Monday as investors feared fresh moves expected from central banks would not be enough to stave off a deep global economic slowdown.

But the yen continued to gain even after the Group of Seven warned the Japanese currency posed a threat to financial and economic stability. CNBC's experts weigh in on whether now is the time to buy the currency.

Aussie Seen Weakening vs. Yen

The Aussie-yen cross may fall as low as 40 yen, predicts Daryl Guppy, CEO of Guppytraders.com.

Dollar Direction to Reverse

If the Fed cuts rates by more than 50 bps, it may reverse the dollar's upward trend, says Sebastien Barbe, senior economist & strategist, Asia ex-Japan at Calyon Corporate & Investment Bank.

Yen to Continue to Strengthen

WALL STREET IN CRISIS - A CNBC SPECIAL REPORT
WALL STREET IN CRISIS - A CNBC SPECIAL REPORT

The euro-yen cross is highly correlated with world stock markets, noted Robin Griffiths from Cazenove Capital. Griffiths believes despite the government's efforts to stabilize the currency, the yen will continue to strengthen and buying of the yen will carry on.

More Gains for the Yen

If FX markets become extremely unstable, that means all the good work that global central banks have been doing, may have limited impact, said Geoffrey Kendrick from UBS. Roger Nightingale from Pointon York believes the yen will strengthen by 50% or more.

An Opportune Time for an M&A Spree

Now is a very opportune time for Japanese companies to go on a M&A spree due to the strengthening yen, says Takashi Toyokawa, financial correspondent at MergerMarket.

KOSPI May Fall Another 25%

The KOSPI broke below 800 points Monday, despite the Bank of Korea's move to slash rates by 75 basis points to 4.25%. Dariusz Kowalczyk, chief investment strategist at CFC Seymour tells CNBC that the index may fall another 25% before it finds a bottom.

China A-Share Market to Bottom at 1,000 Points?

The China A-Share market could find an absolute bottom at 1,000 points, says Fraser Howie, author of "Privatizing China".

Spot Gold Could Fall as Low as $660

Spot gold prices may fall as low as $660 a troy ounce, says Daryl Guppy, CEO at Guppytraders.com.

Fed May Cut Rates to Under 1%

The Federal Reserve could bring interest rates to under 1% by the first-quarter of 2009, predicts John Noonan, senior FX analyst at Thomson Reuters.

Corporate Debt: Not Necessarily a Good Buy

Buying corporate debt and selling stocks may not necessarily be a good investment, says Edgar Chuan, MD at Descartes Investment Management.

Hot Sector Picks in India

The decline on the Indian stock markets presents some attractive bargains in the pharmaceutical and IT sectors, notes Ashok Jainani, VP of research at Khandwala Securities. He reveals his other sector picks to CNBC.

Great Time to Be Buying Stocks

Now is a great time to be buying stocks, say King Lip, portfolio manager at Baker Avenue Asset Management & Bill Smith, senior portfolio manager at SAM Advisors.

Euro in Corrective Phase

The euro is in a corrective, unwinding phase from an over-valued position versus the dollar and yen, Tom Hobson from Merrill Lynch told CNBC.

Yen Rally Set to Continue: Charts

The yen could continue to rally versus the dollar to around 82 yen per dollar, Max Knudsen from PIA - First.com told CNBC while taking a technical look at the long-term averages for dollar/yen.

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