Markets

Something unusual is happening in the Japanese economy

Something unusual is happening in the Japanese economy. While the national unemployment rate, at 2.5%, currently sits near the lowest level in three decades, inflationary pressures are not responding. Indeed, as seen in the chart below from Credit Suisse, not only is underlying inflation not picking up as the economic […]
Something unusual is happening in the Japanese economy
Markets

BoJ policy could be about to get even more radical

The BoJ will announce its first monetary policy decision of the year on Wednesday. It’s likely to be a yawn-fest for financial markets. ANZ Bank says that may not remain the case for long, suggesting risks for additional monetary policy easing are growing given the recent fall in global bond […]
BoJ policy could be about to get even more radical
Markets

Don’t expect tighter monetary policy in Japan anytime soon

Japanese inflationary pressures weakened further in the year to December. Excluding fresh food prices, CPI grew by just 0.7%, down from 0.9% in November. Inflation was even weaker when both fresh food and energy prices were excluded, lifting by only 0.3%. The BoJ’s inflation target is 2%. The BoJ meets […]
Don’t expect tighter monetary policy in Japan anytime soon
Markets

Japan’s labour market is losing momentum

Japanese unemployment rose unexpectedly in October. The number of job openings to job seekers also fell. The data follows a decline in Japanese GDP in the September quarter, and a recent weakening in growth in employee earnings. Inflationary pressures in Tokyo fell sharply in November, reflecting weaker energy prices. Underlying […]
Japan’s labour market is losing momentum
Markets

Japan’s Nikkei 225 just closed at the highest level in decades

Japan’s Nikkei 225 share index surged on Friday, closing at the highest level since November 1991. Along with modest gains in European and US markets on Thursday, stocks were undoubtedly helped by continued weakness in the Japanese yen which hit the lowest level against the greenback since December 2017. The […]
Japan’s Nikkei 225 just closed at the highest level in decades
Markets

Macquarie Bank isn’t convinced the BoJ is about to shock financial markets

The Bank of Japan will announce its July monetary policy decision later today. Speculation the bank could tweak policy settings has increased substantially ahead of the decision, boosting Japanese bond yields and the Japanese yen. Strategists at Macquarie Bank say that if any changes are made, they’re only likely to […]
Macquarie Bank isn’t convinced the BoJ is about to shock financial markets
Markets

Nomura thinks next week’s BoJ meeting could end up being a fizzer

The Bank of Japan will announce its July monetary policy decision early next week — markets think a change in policy settings is coming. Economists at Nomura think the BoJ is unlikely to make any major changes to policy due to a variety of factors, including still-tepid inflationary pressures. It […]
Nomura thinks next week’s BoJ meeting could end up being a fizzer
Markets

Japan’s manufacturing sector is starting to splutter

Activity levels across Japan’s manufacturing sector improved at the slowest pace since late 2016 in July. New export orders fell for a second month while new domestic orders were largely unchanged, hinting the slowdown may persist in the months ahead. Input prices surged, thanks in part to supply-chain disruptions, adding […]
Japan’s manufacturing sector is starting to splutter
Markets

The eyes of the financial world are suddenly back on Japan

Benchmark 10-year Japanese Government Bond (JGB) yields have spiked to the highest level in six months. Reports the Bank of Japan (BoJ) may be about to alter its bond-buying program have been behind the move, resulting in a sharply stronger Japanese yen and losses in Japanese stocks. The BoJ will […]
The eyes of the financial world are suddenly back on Japan