Japanese Yen and Nikkei 225 Gain as Exports Fall
Both the Japanese Yen and the Nikkei 225 in Asian trading, as exports fell for a sixth consecutive month and the prospect of government intervention loomed larger.
Confidence among Japanese manufacturers increased in April, but it is expected to turn negative over the next quarter, as concerns mount over falling exports and a rising Yen.
The Reuters Tankan survey showed that the sentiment in the service sector dampened in April and viewed it as getting worse due to the weakness in private consumption, which accounts for around 60% of the entire Japanese economy.
The most recent Bank of Japan Tankan taken on the 1st April, revealed that confidence amongst Japan’s largest manufacturers had reached its lowest level in almost three years. The worsening sentiment is expected to add pressure on the Japanese government to roll out fresh stimulus measures to put a halt to the rise of the Yen, which is making exports more expensive.
Last night, the Bank of Japan Governor Haruhiko Kuroda said that the BoJ does not face limitations on its asset purchases at the moment, whilst there is also room for pushing the interest on excess cash parked by banks deeper into negative territory.
Latest posts by Daniel Simmons (see all)
- 4 Things to Know in Monday’s Market - September 12, 2016
- 4 Things to Know in Thursday’s Market - September 8, 2016
- 4 Things to Know as EOG Resources Merges With Yates Petroleum in $2.5 Billion Deal - September 7, 2016