Yen Advances Amid Rising Risk Aversion

The Japanese yen strengthened against its major rivals in late Asian deals on Friday amid rising risk aversion, weighed by a slump in Chinese shares, after data showed industrial companies' earnings in China fell for the fifth straight month, and the the country's securities regulator ordered investigations into two major Chinese brokerages.

China Securities Regulatory Commission ordered urged domestic brokerages to cease financing clients' stocks purchases through over-the-counter swap contracts, in order to lessen leveraged financing risk in its stock markets after the summer stock rout.

Figures from the National Bureau of Statistics showed that profits earned by Chinese industrial enterprises decreased for the fifth consecutive month in October.

Industrial profits fell notably by 4.6 percent year-over-year in October, much faster than the 0.1 percent slight decrease in September.

Rising tensions between Russia and Turkey also dampened sentiment. While Russia announced plans to impose a slew of economic sanctions against Turkey, the President of Turkey has refused to apologize for the jet downing and vowed to shoot down any other Russian fighter jet if it entered his country's airspace. The U.S. has urged both countries to "talk and de-escalate" the situation.

In economic front, data from the Ministry of Internal Affairs and Communications showed that Japan's consumer prices increased as expected in October.

The overall consumer price index climbed 0.3 percent year-over-year in October, in line with expectations.

The yen was higher against most major currencies on Thursday. It rose percent 0.29 percent against the pound, and 0.25 percent each against the euro and the franc.

In late Asian trading now, the yen advanced to a 3-day high of 88.28 against the aussie, 2-day highs of 80.31 against the kiwi, 91.95 against the loonie, 184.60 against the pound and 122.40 against the greenback, from its early lows of 88.73, 80.69, 92.28, 185.32 and 122.73, respectively. If the yen extends rise, it may find resistance around 86.00 against the aussie, 78.00 against the kiwi, 90.00 against the loonie, 182.00 against the pound and 120.00 against the greenback.

The yen came off from its prior lows of 130.15 against the euro and 119.86 against the franc, trading at 129.99 and 119.59, respectively. The yen is seen finding resistance around 128.00 against the euro and 118.00 against the franc.

Looking ahead, U.K. preliminary GDP data for the third quarter and Eurozone economic confidence index for November are due in the European session.

At 8:30 am ET, Canada industrial product price index for October is set for release.