Chief Stock Market Correspondent, EMEA
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Feb 26, 2013

JGBs gain on Italy election, 5-yr yield hits record low

TOKYO, Feb 26 (Reuters) – Japanese government bond prices
rose on Tuesday, with the five-year yield hitting a record low,
as Italy’s deadlocked election outcome raised fears the euro
zone debt crisis could resurface.

Italy’s centre left won the lower house as widely expected
but no party or likely coalition appeared likely to be able to
form a majority in the upper house or Senate, creating a
deadlocked parliament, which could threaten the country’s
economic reforms and reignite the euro zone debt crisis.

Feb 21, 2013

Superlong JGBs underperform on subdued demand for 20-yr auction

TOKYO, Feb 21 (Reuters) – Prices on longer-dated Japanese
government bonds eased on Thursday as demand for a 20-year debt
auction was subdued, although a steep fall in Chinese shares
prevented yields from moving much higher.

The sale of 1.2 trillion yen ($12.8 billion), 20-year debt
drew a bid-to-cover ratio of 2.56, its lowest since August, even
though the issue offered a coupon of 1.8 percent, its highest
since March last year.

Feb 20, 2013

Nikkei hits 52-month high; Japan Tobacco sinks

TOKYO (Reuters) – Japan’s Nikkei average climbed to a 52-month high on Wednesday, boosted by Wall Street shares edging up to near-record highs, although analysts said gains could be limited as investors focus on who will become the next Bank of Japan governor.

The Nikkei .N225 advanced 0.7 percent to 11,452.02 after trading as much as 11,510.52, its highest level since October 2008.

Feb 19, 2013

Five-year JGB yield at record low; robust auction demand

TOKYO, Feb 19 (Reuters) – Japanese government bonds rose on
Tuesday, with the five-year yield hitting a record low, after
Bank of Japan minutes revealed board members had discussed
buying longer-dated government debt at their January meeting.

The five-year yield slipped 1 basis point to
0.130 percent to a record low, helping set the coupon of an
auction of 2.7 trillion yen ($28.73 billion) worth of similar
maturities at 0.1 percent, the lowest since Japan started
issuing five-year bonds in 2000.

Feb 19, 2013

Five-yr JGB yield at record low; BOJ debates buying longer-dated govt bonds

TOKYO, Feb 19 (Reuters) – Japanese government bonds rose on
Tuesday, with the five-year yield hitting a record low ahead of
an auction later in the day, after Bank of Japan minutes
revealed board members had discussed buying longer-dated
government debt at their January meeting.

A few members of the nine-member board said one option could
be to extend the duration of government bonds purchased to
around five years, the minutes showed, a move that would help
push down the longer-end of the yield curve.

Feb 15, 2013

JGBs gain on lifers buying, news of Muto as BOJ frontrunner

TOKYO, Feb 15 (Reuters) – Japan government bonds rose on
Friday with the 30-year yield hitting a seven-week low, driven
partly by news that Toshiro Muto, seen as the least dovish
candidate for the governorship of the Bank of Japan, has emerged
as a frontrunner for the job.

Life insurers bought longer-dated debt, while some hedge
funds appeared to be cutting their bearish bets as investors,
who have been expecting a more dovish candidate to get the post,
reassessed their positions.

Feb 14, 2013

JGBs slip but BOJ expectations likely to limit downside

TOKYO, Feb 14 (Reuters) – Yields on Japanese government
bonds edged up on Thursday, tracking higher U.S. yields after a
tepid debt sale in the United States, while the Bank of Japan
left its monetary policy steady.

Downward pressure on JGB prices, however, was likely to be
limited in the near-term as the BOJ was still expected to keep
buying short-dated debt to support the economy, although the
central bank stood pat on Thursday, analysts said.

Jan 29, 2013

Komatsu cuts forecast on Indonesia coal mining slump

TOKYO, Jan 29 (Reuters) – Japan’s Komatsu Ltd, the
world’s second-biggest maker of construction machinery, cut its
annual profit for a second time as demand for mining equipment
in Indonesia tumbled on the back of steep declines in thermal
coal prices.

Indonesia is the world’s top exporter of thermal coal,
largely used to fuel power stations in China and India, but its
coal miners have struggled in the face of tumbling prices as
demand in China slowed.

Jan 24, 2013

Japan Inc’s earnings outlook brightens under ‘Abenomics’

TOKYO, Jan 25 (Reuters) – The yen’s steep decline has
burnished the outlook for Japanese stocks, prompting analysts to
raise profit forecasts for currency-sensitive exporters and
foreign investors to plough $17 billion into the market, the
biggest monthly inflow since 2010.

With 60 percent of Japan’s listed companies focused on
exports, firms ranging from camera maker Nikon Corp to
air-conditioner group Daikin Industries Ltd are basking
in the prospect of a one-off currency boost and the chance to
price their goods more competitively.

Jan 15, 2013

Nikkei scales 32-month high; Sharp shares down on Apple report

TOKYO (Reuters) – Japan’s Nikkei share average climbed 1 percent to a 32-month high on Tuesday, driving the benchmark further into “overbought” territory, as persistent weakness in the yen boosts demand for exporters’ shares.

The Nikkei rose 110.23 points to 10,911.80, setting its sights on the 11,000-mark, a level not seen since late April 2010. It rose 1.1 percent last week to log its ninth straight week of gains and its longest such winning run since 1988. Monday was a public holiday in Japan.

    • 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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