Chief Stock Market Correspondent, EMEA
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Jul 5, 2012

year yields fall, 30-year up; curve steepens

TOKYO, July 5 (Reuters) – Benchmark 10-year Japanese
government bond yields dipped on Thursday, edging close to a
nine-year low hit in early June, while longer-dated debt
underperformed ahead of next week’s fresh supply, leading to a
slight steepening of the yield curve.

The 10-year yield edged down 0.5 basis point
to 0.810 percent, helped by follow-through buying after
Tuesday’s surprisingly robust demand for a debt auction of
similar maturity. The yield at 0.810 percent was just shy of its
lowest level since 2003, of 0.79 percent, reached on June 4.

Jul 4, 2012

JGB prices dip ahead of ECB, 10-year debt steady

TOKYO, July 4 (Reuters) – Japanese government bond prices
were mostly lower on Wednesday ahead of a European Central Bank
meeting and key U.S. jobs data, although benchmark 10-year debt
was unchanged, holding onto gains from the previous two
sessions.

“The market sees a 100 percent chance of the ECB easing (on
Thursday), though the JGB market is not expecting another easing
by the Bank of Japan,” said Chotaro Morita, chief rates
strategist at Barclays Securities Japan Ltd.

Jul 3, 2012

JGBs recover to trade higher after 10-year auction

TOKYO, July 3 (Reuters) – Japan’s 10-year government bond
futures and prices recovered early losses to trade higher o n
Tuesday after demand was robust for a debt auction of similar
maturity despite the lowest coupon rate in nine years.

Many market players had previously expected demand for the
2.3 trillion yen ($29 billion) worth of 10-year bonds to be just
fair as they offered a coupon of 0.8 percent, the lowest since
2003.

Jul 2, 2012

JGB yields fall, Tuesday’s 10-year auction eyed

TOKYO, July 2 (Reuters) – Japan’s government bond prices
rose on Monday, with superlongs outperforming, driven by demand
at the start of the quarter, while the response for Tuesday’s
auction of 10-year debt was likely to be fair despite an
expected low coupon rate.

The yield on both the 20- and 30-year JGBs
dipped 1.5 basis points, to 1.645 and 1.865
percent respectively.

Jun 29, 2012

Nikkei ends above key level for 1st time in 7 weeks

TOKYO (Reuters) – Japan’s Nikkei average jumped 1.5 percent on Friday to close above the key 9,000 level for the first time in seven weeks after European leaders agreed to take emergency action to bring down borrowing costs for Italy and Spain.

The Nikkei was down 10.7 percent this quarter, however, in its worst quarterly performance since last year’s July-September period, though it is still up 6.5 percent so far this year.

Jun 28, 2012

Nikkei hits highest close in 6 weeks, financials gain

TOKYO (Reuters) – Japan’s Nikkei share average rose 1.7 percent on Thursday to its highest close in six weeks, helped by short-covering as the quarter-end neared, although it was still on track for the worst quarterly performance in two years.

The Nikkei .N225 was up 143.62 points at 8,874.11, its highest close since May 17 but holding below its 200-day moving average at 8,940.91.

Jun 27, 2012

Nikkei snaps 3-session of loss, led by housing stocks

TOKYO (Reuters) – Japan’s Nikkei average broke a three-session losing run on Wednesday, as investors snapped up construction and real estate shares on expectations they will benefit from a surge in housing demand ahead of a sales tax increase in 2014.

The construction and real estate sectors were also likely to be more insulated from further fallout from the euro zone sovereign debt crisis, market participants said.

Jun 26, 2012

Nikkei closes lowest in a week on Europe concerns

TOKYO (Reuters) – Japan’s Nikkei share average fell to its lowest close in a week on Tuesday on growing concerns this week’s summit of European leaders will fail to make any significant progress in tackling the region’s debt crisis.

Worries over the euro zone boosted the appeal of the Japanese currency, which weighed on exporters, although gains in defensive stocks offered some support.

Jun 26, 2012

Nikkei hits one-week low on doubts over EU summit

TOKYO (Reuters) – Japan’s Nikkei share average fell to a one-week low on Tuesday on growing concerns a European leaders summit this week will fail to make any significant progress in tackling the region’s debt crisis.

Worries over the euro zone boosted the appeal of the Japanese currency, which weighed on exporters, although gains in defensive stocks provided some support.

Jun 25, 2012

Japan bank shares attractive on earnings outlook

TOKYO, June 25 (Reuters) – Japanese banking shares, hit by
worries about the impact of Europe’s woes despite the lenders’
limited exposure to the region’s troubled debt, offer a good
investment opportunity as the sector’s earnings momentum
improves further, analysts said.

Japan’s big banks – Mitsubishi UFJ Financial Group,
Mizuho Financial Group and Sumitomo Mitsui Financial
Group – are also expected to benefit from their
overseas expansion, though they still face sluggish loan demand
in their home market.

    • About Dominic

      "I am head of the European stock markets team based in London. Before that, I was with Reuters Hong Kong for more than 10 years, covering politics, banking, macro-economy and Asian G-3 currency bonds and credit."
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