Tag Archive: Japan

FX Daily, June 08: Marking Time ahead of the Week’s Big Events

The capital markets appear to be in a holding pattern ahead of this week's big events, including the US CPI and the ECB meeting. Equities are little changed but with a heavier bias evident. Most of the large bourses in the Asia Pacific region were lower, except Australia, which eked out a small gain.

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FX Daily, May 31: China Raises Reserve Requirement for FX, Stemming the Yuan’s Rise

US and UK markets are closed for holidays today, contributing to the rather subdued price action today. The MSCI Asia Pacific Index rallied two percent last week, the most in three months, and most markets began off the week with modest gains. Japan, Australia, and Singapore, for notable exceptions.

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FX Daily, May 28: The Yuan Extends Gains, While Sterling’s First Close above $1.42 in Three Years Goes for Nought

The recovery of the US 10-year yield, so it is flat on the week near 1.61% coupled with month-end demand, is helping the US dollar firm. While the yen is bearing the burden on the week, with a 0.8% loss, the Antipodeans are leading the downside on the day.

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FX Daily, May 25: Softer Yields Weigh on the Greenback

The decline in US 10-year rates to two-week lows below 1.59% is helping rebuild bullish enthusiasm for stocks and weighing on the US dollar. The NASDAQ reached two-week highs yesterday, and almost all the large markets in the Asia Pacific region rose, though India struggled.

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FX Daily, May 20: Market Stabilize after Yesterday’s Tumultuous Session

US equity indices finished lower, but the real story was their recovery. Asia Pacific equities were mixed, with Australia's 1.5% rally leading the recovery in some markets, including Tokyo and Singapore. Europe's Dow Jones Stoxx 600 is up a little more than 0.5% near mid-session, led by information technology and industrials, while energy and financials lagged with small gains.

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FX Daily, May 18: Risk Appetites Return Bigly

In Asia, equities markets rallied strongly, led by the more than 5% gain in Taiwan, the most in over a year as Monday's 3% drop was more than overcome. The Nikkei gained more than 2% despite the deeper than expected contraction in Q1 GDP. Hong Kong, South Korea, and India also rose more than a 1% gain as tech came roaring back.

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FX Daily, May 17: US and Europe may Announce Tariff Truce

There are two general developments as the busy week gets underway. First, despite accelerated price readings in the US (CPI, PPI, import prices, and University of Michigan survey), US rates are soft. The 10-year yield is near 1.61% after rising to 1.70% after the CPI surprise last week.

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FX Daily, April 26: Big Week Begins Quietly, with the Greenback Still Under Pressure

Overview: What promises to be a notable week has begun off quietly: the US, EMU, and South Korea report Q1 GDP.   The eurozone also provides its first estimate of April inflation.  Corporate earnings feature tech and financial firms.  Equities are mostly firmer in the Asia Pacific region and Europe.

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FX Daily, March 9: Turn Around Tuesday Strikes

It is not clear the trigger, but risk-taking appetites rebounded smartly today after the NASDAQ completed a more than 10% pullback from its highs yesterday.  Ironically, the Dow Jones Industrials set new record highs yesterday too.  Most equity markets in the Asia Pacific region rallied.  The notable exceptions were South Korea and China. 

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FX Daily, February 15: Sterling Continues to Run Higher and US Winter Storm Gives Oil Another Boost

US and Greater Chinese markets are closed today, but the markets are moving. Equities are bid. The Nikkei led the Asia Pacific region with a 2% gain and pushed above 30000 for the first time since 1990.

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FX Daily, January 29: Please Stay Seated, the Ride is not Over

Powerful corrective forces continue to grip the market. After a large rally to start the New Year, the correction is punishing. Most Asia Pacific equities markets were off again today to bring the week's loss to 2.5% to 5.5% throughout the region. Europe's Dow Jones Stoxx 600 is a little more than 1% lower on the day. 

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FX Daily, January 22: Faltering Friday

Fear that social restrictions may have to be broadened and extended is helping spur a wave of profit-taking and de-risking, which has also been encouraged by disappointingly high-frequency data. The equity rally seemed to falter a bit in the US, as the S&P 500 eked out a minor 0.03% gain yesterday.

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FX Daily, January 18: US is on Holiday, but the Dollar has Legs

Overview: The new week has begun like last week ended.  Equities are a bit heavy.  The MSCI Asia Pacific Index fell for the second session, its first back-to-back loss since before Christmas.  China and Hong Kong were the notable exceptions, perhaps helped by stronger than expected GDP. 

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FX Daily, January 14: Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus

Overview:  The capital markets are becalmed today. There does not appear to be much reaction to the news that the House of Representatives impeached President Trump an unprecedented second time with greater bipartisan support than previously (10 GOP voted with the Democratic majority). 

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FX Daily, January 12: Markets Catch Collective Breath

Overview:  The capital markets were stabilizing today after dramatic moves yesterday. Equity markets are recovering, and the dollar is paring yesterday's gains.  Most equity markets in the Asia Pacific region rose, though Taiwan, South Korea, and Australia were notable exceptions. 

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They’ve Gone Too Far (or have they?)

Between November 1998 and February 1999, Japan’s government bond (JGB) market was utterly decimated. You want to find an historical example of a real bond rout (no caps nor exclamations necessary), take a look at what happened during those three exhilarating (if you were a government official) months.

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Seizing The Dirt Shirt Title

In mid-December 2019, before the world had heard of COVID, China’s Central Economic Work Conference had released a rather startling statement for the world to consume. In the West, everything was said to be on the up. Central banks had responded, forcefully, many claimed, more than enough to deal with that year’s “unexpected” globally synchronized downturn.

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FX Daily, January 04: Rising Equities and Slumping Dollar Greet the New Year

Overview:  The first day of the New Year, but it feels a lot like last year.  The dollar is under pressure, and equities are higher.  Outside of Japan and Malaysia, The MSCI Asia Pacific Index extended last week's 3.6% gain. It has not rallied for seven consecutive sessions.

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FX Daily, November 27: Dollar Offered Ahead of the Weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy.   In the Asia Pacific, only Australia and India did not end the week on a firm note.  The MSCI Asia Pacific completed its fourth consecutive weekly gain, for around a 13% gain. 

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Deflation Returns To Japan, Part 2

Japan Finance Minister Taro Aso, who is also Deputy Prime Minister, caused a global stir of sorts back in early June when he appeared to express something like Japanese racial superiority at least with respect to how that country was handling the COVID pandemic.

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