A chance to bond with China?

Around $155 billion could start flowing into China’s local-currency bond market in the coming year if renminbi-denominated debt is added to influential bond indices as a reward for recent efforts to grant greater access to foreign investors. Over the past year, officials have expanded the types of foreign investors who can invest in the so-called … Continue reading “A chance to bond with China?”

Bank of Japan issues Brexit warning

Asia including Japan briefing – During September, Japan’s Foreign Ministry warned the UK that Brexit could result in Japanese firms moving their European headquarters out of the UK. The Bank of Japan maintained its negative interest rate, instigated a new policy of yield control, and reiterated its relatively aggressive policy stance. Looking ahead, further cuts … Continue reading “Bank of Japan issues Brexit warning”

Yen’s fluctuations continue to affect markets

Asia including Japan Briefing – Medium-sized Japanese companies outperformed their larger counterparts during August as exporters remained hostage to the yen’s strength. The Nikkei 225 Index and the Topix Index rose by 1.9% and 0.5% respectively over the month; in comparison, the TSE Second Section Index climbed by 2.8%. Better-than-expected US employment data fuelled expectations … Continue reading “Yen’s fluctuations continue to affect markets”

China’s Black Monday – one year on

This week marks the anniversary of last year’s stock market crash that some have dubbed China’s Black Monday. Shanghai shares fell 8.5% on August 24, triggering losses on exchanges around the world and causing mayhem in currency and commodity markets. Apart from the financial losses, the market meltdown damaged the reputation of China’s policymakers. The … Continue reading “China’s Black Monday – one year on”

Yen’s surge hits Japan’s exporters in June

Having fallen heavily in the wake of the UK’s shock decision to quit the European Union (EU), Asian markets experienced a slight rebound as June drew to a close. Japan’s Prime Minister, Shinzo Abe, attended an emergency meeting between the Government and the Bank of Japan (BoJ) to discuss the implications of the UK’s exit … Continue reading “Yen’s surge hits Japan’s exporters in June”

Better-than-expected economic growth in Japan

Having contracted by 0.4% during the final quarter of 2015, Japan’s economy expanded more strongly than expected during the first the months of 2016, posting quarterly growth of 0.4% and annualised growth of 1.7%. Despite weakness in export activity and public investment, economic growth received an overall boost from an increase in government spending. The … Continue reading “Better-than-expected economic growth in Japan”