Exchange traded funds (ETFs) investing in Japanese stocks were set for a higher open in the U.S. Wednesday after the Nikkei stock average jumped 2.6% in local trading. A weaker yen helped boost Japanese equities.
Some bargain-hunting investors have been using iShares MSCI Japan Index Fund (NYSEArca: EWJ) and other ETFs after Japanese stocks plunged following Japan’s earthquake, tsunami and nuclear disaster. [Taking A Bold Move With Japan ETFs.]
Meanwhile, ETFs tracking the movement of the yen vs. the U.S. dollar such as CurrencyShares Japanese Yen Trust (NYSEArca: FXY) have eased back after spiking in mid-March.
The SPDR S&P 500 ETF (NYSEArca: SPY) was up 0.6% in preopen trading Wednesday. The blue-chip ETF was trading close to $133 a share, recouping much of the recent correction. The fund’s 52-week high is $134.69 set in February. Investors will be focusing on Wednesday’s ADP employment report and remarks from James Bullard, head of the St. Louis Fed.
The dollar strengthened early Wednesday after Dallas Fed President Richard Fisher said he would vote against extending the Fed’s quantitative easing program. The PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) is sitting near record lows.
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