Tag Archive: Japan

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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FX Daily, November 20: US Treasury-Fed Dispute Spurs Handwringing but Immediate Market Impact was Exaggerated

Overview:  News that the stimulus talks between the House Democrats and Senate Republicans was the excuse traders were looking for to extend the US equity gains yesterday, but shortly after the close, confirmation that Treasury was not going to agree to extend several Fed facilities sent stocks reeling. 

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FX Daily, November 18: Balancing Pandemic Surge with Optimism about Vaccine

News that Tokyo will go to its highest alert as it faces a rising contagion snapped a 12-day rally in the Nikkei, but most bourses in the Asia Pacific region excluding Japan advanced, though Chinese equities were mixed. European equities are narrowly mixed as the Dow Jones Stoxx 600 continues to gyrate within Monday's range.

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FX Daily, November 16: Risk-On Despite Surging Pandemic

Despite the surging pandemic and new restriction measure, risk-appetites appear strong to start the week. Led by 2% gains in the Nikkei and Taiwan's Taiex, all of the Asia Pacific region's equity markets advanced. European markets have followed suit and the Dow Jones Stoxx 600 is knocking on last week's eight-month high.

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FX Daily, November 12: Nervous Calm in the Capital Markets

There is a nervous calm in the capital markets today.  The equity rally in the Asia Pacific region stalled to end an eight-day rally, though the Nikkei's rally remains intact. 

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FX Daily. October 29: Markets Continue to Struggle

The spreading virus that is shutting down large parts of Europe, while the US is reluctant to return to lockdowns and refuses to have a nationwide requirement for masks in public hit risk assets yesterday.  The S&P posted its largest decline in four-months yesterday (~3.5%), and the selling carried into the Asia Pacific region.

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FX Daily, October 1: Hope Springs Eternal

Speculation that a new round of fiscal stimulus from the US is possible is encouraging risk-taking today.  Many large Asian centers were closed for holidays today, and a technical problem prevented the Tokyo Stock Exchange from opening.

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FX Daily, September 24: Darkest Before Dawn

The two recent market developments, push lower in stocks, and higher in the dollar is continuing. Tuesday's gains in the S&P 500 and NASDAQ were unwound on Wednesday and this is helping drag global markets lower. The MSCI Asia Pacific Index fell for the fourth consecutive session today and many markets (India, Shenzhen, Taiwan, and Korea) fell more than 2% and most others were off more than 1%.

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Uh Oh, The Dollar Has Caught A Bid

Anyone who follows Alhambra knows that we keep an eye on the dollar. It is a very important part of our process of identifying the economic environment. A rising dollar, when combined with a falling rate of growth, can be a lethal combination. That was the situation in March and of course during the financial crisis of 2008.

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Reopening Inertia, Asian Dollar Style (Still Waiting On The Crash)

Why are there still outstanding dollar swap balances? It is the middle of September, for cryin’ out loud, and the Federal Reserve reports $52.3 billion remains on its books as of yesterday.

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