The Nikkei is now almost 0.5% lower after opening higher as Toyota‘s woes weigh on the index. The big car manufacturer has seen its share price fall to a 10-month low. As usual, none of this is having any impact … Continue reading
Won’t comment on what specific policies BOJ should take. USD/JPY has slipped a touch in early European trade, presently at 90.65. Yesterday there was talk of Japanese exporter sell orders up around 91.00. Interest looks to still be there given recent price … Continue reading
Falling unemployment will have been a welcome surprise but deflation remains public enemy number one for the Japanese economy, as highlighted by todays’ economic data.
The jobless rate of 5.1% was slightly better than expected.
Japanese deputy finance minister Yoshihiko Noda says he doesn’t expect the Japanese economy to go into a double-dip recession in the January-March quarter. Phew, that’s a relief.
The expectations were closer to +0.1% so this is yet another disappointing Japanese economic indicator.
Imports increased by 12% YoY in December and imports decreased by 5.5%. An interesting footnote to the data is that China has overtaken the US as Japan’s top export destination.
Fitch Ratings says it has no plans to change ratings on Japanese sovereign debt. It has a stable outlook on Japan, Reuters reports. S&P earlier put Japan on watch for a downgrade.
So we’re unlikely to see official Japanese intervention anytime soon to arrest yens’ recent strength. I doubt many really saw such a scenario as realisitic at present levels anyways. Might get a bit of Kampo buy interest, but that’s about it. … Continue reading
BOJ and government are following same policy direction to overcome deflation.