Overnight

The dollar moved higher against the yen in overnight trading and the Nikkei responded, gaining 0.8% to hit its highest level in six months as Japan's exporters benefit from a stronger dollar. Two other markets were up,  the ASX 200, 0.6%, and the Taiwan TWII climbed 0.3%.  

The WSJ reported that South Korea gross domestic product grew 2.7% year-over-year in the third quarter, down from a 3.3% gain in the prior three-month period, according to preliminary data from the Bank of Korea. Business investment declined in the country amid frail private consumption and weak exports. Analysts said that without brisk housing construction—made possible by cheap bank loans and easier mortgage rules supported by financial authorities—Korean growth would have slowed further.

“Low productivity is prevalent, in particular in the services sector and among small and medium-sized enterprises,” Fitch Ratings said in a report about the South Korean economy.

Korea’s Kospi was down 0.8%. Both the Hang Seng Index and the Shanghai Composite were down about 0.2%.." Chinese shares traded down as the yuan was at 6.7744, off 0.8%, from Monday against the dollar, six-year low. Some postulated this suggests a directed path of depreciation. In The Markit flash U.S. manufacturing purchasing managers index rose to 53.2 in October from 51.5 in September. That bit of news seemed to stoke belief that a December Fed rate hike is more certain and risk bets are on again as the U.S. Economy shows some signs of life.

With the dollar index hitting a nine month high, 98.846 on Monday, gold edged slightly lower early on Tuesday as the U.S. dollar gained on increasing expectations of a December interest rate hike by the Federal Reserve.