Yen back in favour

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TOKYO: The yen was broadly firmer early on Wednesday as demand for the safe-haven currency picked up after disappointing Chinese trade data took the wind out of a global rally rooted in stronger risk appetites.

The dollar last stood little changed at 112.585 yen, having slid 0.7 percent overnight, while the euro was down 0.4 percent at 123.54 yen, well off Friday's high of 125.585.

The Australian dollar dipped under 84 yen, pulling further from a one-month high of 85.00 set on Monday.

European and U.S. stocks fell overnight while many commodities came under pressure after China's exports tumbled by the most in over six years last month.

Tokyo's Nikkei followed suit on Wednesday, shedding 1.6 percent and sustaining demand for the yen.

The soft China data highlighted risks facing the global economy, bolstering expectations for dovish outcomes at central bank policy reviews in Europe and New Zealand on Thursday.

The European Central Bank is considered almost certain to ease, which in theory would be negative for the euro, but no one quite dared to position for bold action given the ECB has disappointed before.