Yen decline boosts Japan’s exports in November

Japan’s export performance improved strongly in November as rapid decline in the yen and a recovery in overseas demand boosted shipments from the trade sector, handily beating economists’ expectations. Ministry of Finance (MOF) data showed on Monday that exports fell 0.4 percent in the year to November. That compares with the 2.0 percent annual decline expected by economists in a Reuters poll, and follows a 10.3 percent decline in the year to October…

BOJ could raise its bond yield target as early as 2017

Interest rate hikes are back on the radar at the Bank of Japan, for the first time in a decade, as the U.S. Federal Reserve’s tightening cycle pushes global bond yields higher, heralding a new era for central banks retreating from post-crisis stimulus. With inflation stubbornly adrift of its 2 percent target, and having just revamped its policy framework, the BOJ is in no rush to raise its 10-year bond yield target, and sees any talk of such a move as hypothetical and more a long-term option…

IMF’s Lipton calls for more vigorous fiscal, structural policies to reflate Japan’s economy

International Monetary Fund First Deputy Managing Director David Lipton welcomed the Bank of Japan’s new policy framework as a boost to its credibility, but called for more vigorous fiscal and structural policies to reflate a fragile economic recovery. Lipton also shrugged off the view that monetary policy was nearing its limit as a means to revive economies across the globe, stressing that central banks must be open to new ideas to help spur growth…

BOJ shifts policy framework to target government bond yields

The Bank of Japan made an abrupt shift on Wednesday to targeting interest rates on government bonds to achieve its elusive inflation target, after years of massive money printing failed to jolt the economy out of decades-long stagnation. While the BOJ reassured markets it would continue to buy large amounts of bonds and riskier assets, the policy reboot appeared to open the door for an eventual winding down of its huge asset purchases, and tried to repair some of the damage caused by its shock move to negative rates early this year…

Wall Street rallies, dollar slides after U.S. Fed, BOJ rate meetings

U.S. stocks rallied and the dollar index eased further on Wednesday after the Federal Reserve left U.S. interest rates unchanged, keeping its low-rate environment intact for now. In a statement following a two-day policy meeting, the U.S. central bank signaled it could tighten monetary policy by year-end as the labor market improved further, but Fed policymakers cut the number of rate increases they expect this year to one from two…

Abe’s latest stimulus will do little to boost economy: Japan Inc.

Japanese companies overwhelmingly say the government’s latest stimulus will do little to boost the economy and the Bank of Japan should not ease further, a Reuters poll showed, a setback for policymakers’ efforts to overcome deflation and stagnation. Prime Minister Shinzo Abe this month unveiled a 13.5 trillion yen ($135 billion) fiscal package of public works projects and other measures, vowing a united front with the BOJ to revive the economy and raising speculation of a surge in government spending essentially financed by the central bank…

BOJ likely to take bold action in September, says Abe’s adviser

TOKYO—The Bank of Japan will likely take bold action next month, an adviser to Prime Minister Shinzo Abe said, rejecting speculation that the central bank may use a coming policy review to justify a paring back of its stimulus. “However they conduct the assessment, there is already an answer: Monetary policy hasn’t been eased enough,” Etsuro Honda said of the review set for release at the central bank’s next policy meeting in September…

Dollar tumbles after Fed caution; Global stocks fall on weak corporate reports

The dollar took its biggest tumble in almost two months on Thursday and stocks fell from nine-month highs as cautious sounds from the Fed left focus firmly on Japan’s next round of money-printing measures. The greenback was down 0.5 percent against six other major currencies .DXY and Wall Street ESc1 was heading for weaker start after the U.S. Federal Reserve ended its meeting on Wednesday with little suggestion it was in a rush to raise U.S. interest rates…

Yen rallies as investors await BOJ’s meeting this week

A buoyant yen and oil prices at their lowest in three months kept stock markets on the defensive on Tuesday as investors awaited central bank meetings this week that will unveil new stimulus in Japan and may provide clues on U.S. interest rates. U.S. equity markets fell while stocks in Europe traded slightly above break-even as gains in major healthcare and consumer goods stocks propped up European equities to offset persistent concerns over the region’s banking system…

Bank of Japan could deploy ‘helicopter money’

This weekend saw a stark change-of-pace in price action trends around Japanese markets. After Shinzo Abe’s coalition won a super-majority in the upper-hours of Japanese parliament, resistance has been lessened for the push for constitutional reforms and additional economic stimulus. This provided a significant move of weakness in the Yen as the prospect of even more intervention became a much more likely prospect for the island nation.

Japan projects inflation forecasts much lower than BOJ’s target for 2016-2017

Japan’s government is expected to cut its consumer inflation forecast for the current fiscal year and produce an estimate for fiscal 2017 that is much lower than the central bank’s 2 percent target, government sources told Reuters on Tuesday. The gloomy government assessment may add to market doubts over the Bank of Japan’s optimistic price forecasts and step up pressure on the central bank to expand stimulus this month as it struggles to fend off deflationary risks…

Japan companies’ inflation expectations slide in June: BOJ tankan survey

Japanese companies’ inflation expectations fell slightly in June from three months ago, the Bank of Japan’s tankan survey showed, adding to growing doubts over its argument that aggressive money printing will accelerate price growth to its 2 percent goal. The data on inflation expectations came after Friday’s tankan sentiment survey showed business confidence was subdued in the second quarter, heightening pressure on the BOJ to roll out yet more stimulus to ease the pain from a strong yen…

Newsletter

Zero spam.