JPY little firmer in orderly Asian trade

Not a huge difference in levels this morning compared with where last week left off, the JPY seeing some marginal, across the board, gains. USD/JPY is presently at 95.20, down from around 95.50, while EUR/JPY is at 120.80 from around 121.30. Asian stock markets were generally lower.  In Japan sales of new cars, trucks and buses plunged 27.3% from a year earlier to 215,783 units in November after falling 13.1% in October.  Bank of Japan Governor Shirakawa, speaking in Fukoka, admitted Japan’s economy is experiencing a rapid downturn and warned the bank needs to keep an eye on downside risks when guiding monetary policy. The official said Japanese firms are experiencing an acute lack of credit availability and the tight financial conditions will be detrimental to the country’s economy. Indeed it is being reported by Japan’s public broadcaster NHK that the BOJ is to hold an emergency meeting this week, to introduce measures to make it easier for companies to raise funds. Shirakawa said he expects the Japanese economy to enter a period of deflation in 2009, as commodity prices decline and economic growth weakens.