Leika's Feed
Sep 4, 2015

BOJ may offer bleaker view on overseas growth, exports: sources

TOKYO (Reuters) – The Bank of Japan is expected to offer a bleaker view on overseas economies and may lower its assessment on the country’s exports next week, sources familiar with the matter told Reuters by Friday.

The more pessimistic outlook reflects growing pressure on the world’s third-largest economy from China’s slowdown and weakness in emerging Asia economies.

Sep 4, 2015

No BOJ easing needed in October if inflation expectations anchored – IMF

TOKYO (Reuters) – The Bank of Japan does not need to expand monetary policy in October even if it cuts its growth and price forecasts, as long as inflation expectations are well anchored, the IMF’s mission chief for Japan said on Friday.

Kalpana Kochhar, who is also deputy director of the International Monetary Fund’s Asia and Pacific Department, said there was scope for China to expand the yuan’s trading band further.

Sep 4, 2015

No BOJ easing needed in Oct if inflation expectations anchored: IMF

TOKYO (Reuters) – The Bank of Japan does not need to expand monetary policy in October even if it cuts its growth and price forecasts, as long as inflation expectations are well anchored, the IMF’s mission chief for Japan said on Friday.

Kalpana Kochhar, who is also deputy director of the International Monetary Fund’s Asia and Pacific Department, said there was scope for China to expand the yuan’s CNY=CFXS trading band further.

Sep 4, 2015

Japan wages rebound, but modest bonus gains weigh on consumption

TOKYO (Reuters) – Japanese wages rebounded in July after plunging the prior month but summer bonus payments rose only modestly, government data showed, suggesting that soft household spending may weigh on the world’s third-largest economy for longer than expected.

Real wages, adjusted for inflation, rose an annual 0.3 percent in July to mark the first increase in 27 months. That offers some relief to policymakers struggling to sustain a virtuous cycle of rising corporate profits leading to a boost in consumption through higher wages.

Sep 3, 2015

BOJ’s Kiuchi warns Japan won’t hit inflation goal for another 2-1/2 years

AOMORI, Japan (Reuters) – Japan is unlikely to see inflation hit the central bank’s 2 percent target over the next 2-1/2 years as consumer spending remains weak and China’s slowdown hurts exports, Bank of Japan board member Takahide Kiuchi said on Thursday.

The former market economist also warned that Asian economies may see growth slow significantly as China suffers from huge slack and U.S. consumer spending remains soft, keeping any rebound in Japan’s economy modest.

Sep 2, 2015

ADB head says China yuan’s falls reflect market value

YOKOHAMA, Japan (Reuters) – The yuan’s recent depreciation moves it closer toward its real market value, the head of the Asian Development Bank said, dismissing fears that China may export deflation to its Asian neighbors by flooding goods made cheaper by a weak currency.

ADB President Takehiko Nakao also said that while China’s economy may no longer expand at a 10-percent pace seen in the past, it will continue to grow steadily as it shifts to a consumption-driven economy with a deeper service sector.

Sep 1, 2015

Japan firms invest less as China fears grow, keeps BOJ pressured

TOKYO (Reuters) – Japanese firms spent less on plant and equipment in April-June than in the previous quarter despite reaping record profits, a sign premier Shinzo Abe’s stimulus policies have failed to spur new investment key to ending nearly two decades of deflation.

Fears of a sharp slowdown in China and the recent market sell-off may further dampen companies’ spending appetite and hurt Japan’s fragile recovery, analysts say.

Sep 1, 2015

Japan Q2 capex growth slows, keeps pressure for more economic stimulus

TOKYO, Sept 1 (Reuters) – Japanese corporate capital
expenditure increased 5.6 percent in April-June from a year ago,
slowing from the previous quarter and adding to signs of an
economy struggling to recover from a slump.

The data keeps pressure on policymakers to top up stimulus
as they worry about persistent weakness in private consumption
and exports with China’s slowdown hitting global markets.

Aug 28, 2015

Japan inflation stalls and spending slides, keeps policymakers under pressure

TOKYO (Reuters) – Japan’s consumer inflation ground to a halt for the first time in more than two years and household spending unexpectedly fell in July, heightening pressure on policymakers to offer fresh fiscal and monetary support to underpin a fragile recovery.

The gloomy data, coupled with soft exports blamed on China’s slowdown, reinforces the dominant market view that any rebound in growth from a contraction in April-June will be modest.

Aug 28, 2015

Japan inflation stalls and spending slides, keeps BOJ under pressure

TOKYO (Reuters) – Japan’s core consumer inflation was flat in the year to July and household spending unexpectedly fell, casting deeper doubt on the central bank’s forecast that a solid economic recovery will help accelerate inflation to its 2 percent target.

While the Bank of Japan has said it will look through the effect of slumping oil costs on inflation, the weak figures will keep it under pressure to expand its massive stimulus programme.