Tetsushi's Feed
Jun 25, 2015

JBIC’s Watanabe sees yen at current levels, Kuroda’s weak yen view not strange

TOKYO, June 25 (Reuters) – The yen is likely to move around
current levels towards year-end even if the United States raises
interest rates, said a former top currency diplomat who now
heads the state-operated lender Japan Bank for International
Cooperation.

Hiroshi Watanabe said he saw nothing strange in a recent
remark by Bank of Japan Governor Haruhiko Kuroda that the yen is
unlikely to weaken further.

Jun 20, 2015

One-third of Japan firms’ profit targets at risk at current yen rate: poll

TOKYO (Reuters) – One-third of Japanese firms say their profit plans for this business year would be hurt at current yen levels around 120 to 125 to the dollar, and that increases to a majority of companies if the currency weakens further to 130, a Reuters poll showed.

Concerns have grown that a further rapid depreciation in the yen could damage even an export-reliant economy like Japan, as import costs have spiked. Those include raw materials and fuel – a heavy burden for a country that has shut all its nuclear reactors in the wake of the 2011 Fukushima disaster.

Jun 19, 2015

One-third of Japan firms’ profit targets at risk at current yen rate: Reuters poll

TOKYO (Reuters) – One-third of Japanese firms say their profit plans for this business year would be hurt at current yen levels around 120 to 125 to the dollar, and that increases to a majority of companies if the currency weakens further to 130, a Reuters poll showed.

Concerns have grown that a further rapid depreciation in the yen could damage even an export-reliant economy like Japan, as import costs have spiked. Those include raw materials and fuel – a heavy burden for a country that has shut all its nuclear reactors in the wake of the 2011 Fukushima disaster.

Jun 18, 2015

Japan business mood signals pick-up in private consumption: Reuters Tankan

TOKYO (Reuters) – Confidence at Japanese manufacturers in June rose for the second straight month and retailers were at their most optimistic in over a year, a Reuters poll showed, offering a welcome sign that consumers may have finally shaken off the effects of a sales tax hike.

The Reuters Tankan – which closely tracks the central bank’s quarterly tankan survey – gives credence to the Bank of Japan’s view that the economic recovery will strengthen over the next year although analysts doubt its 2 percent inflation target is achievable in fiscal 2016.

Jun 17, 2015

Japan export slowdown could weigh on second-quarter GDP growth

TOKYO (Reuters) – Japan’s export growth slowed for a second straight month in May, with weak external demand now threatening to erode economic growth in the current quarter.

Ministry of Finance (MOF) data showed exports grew 2.4 percent year-on-year in May, less than a 3.5 percent gain seen by economists and a 8.0 percent rise in the prior month. Compared with April, exports fell 2.7 percent.

Jun 17, 2015

Pinched pensions limit Japanese consumer clout

TOKYO, June 17 (Reuters) – While Japan’s stimulus policies
are beginning to have some effect, with more people beginning to
spend, pensioners, a big and growing category of consumers, are
clinging on to their cash, limiting the chances of a demand-led
recovery.

Consumption, which as in many developed economies makes up
just under two-thirds of the economy, increased last fiscal year
for most groups, but spending by households where no one was
employed, which includes pensioners, fell 1.5 percent, keeping
overall household spending flat.

Jun 17, 2015

Japan export slowdown could weigh on Q2 GDP growth

TOKYO (Reuters) – Japan’s export growth slowed for a second straight month in May, with weak external demand now threatening to erode economic growth in the current quarter.

Ministry of Finance (MOF) data showed exports grew 2.4 percent year-on-year in May, less than a 3.5 percent gain seen by economists and a 8.0 percent rise in the prior month. Compared with April, exports fell 2.7 percent.

Jun 13, 2015

Bank of Japan’s Kuroda was not trying to send warning to yen bears: sources

TOKYO (Reuters) – The Bank of Japan governor’s remark playing down the chance of more weakness in the yen was not part of a concerted effort by Tokyo to keep the currency’s sharp declines in check, government and central bank officials with knowledge of the matter said.

The yen jumped 2 yen from a near 13-year low against the dollar after Governor Haruhiko Kuroda told parliament on Wednesday the yen was unlikely to fall further on a real effective exchange rate basis as it was already “very weak.”

Jun 8, 2015

Japan GDP hits annualized 3.9 percent growth in first-quarter as firms ramp up capex

TOKYO (Reuters) – Japan’s economy expanded more than initially expected in January-March as companies ramped up capital investment, underscoring the central bank’s view that recovery from last year’s recession is gaining momentum.

The economy grew an annualized 3.9 percent in the first three months of this year, Cabinet Office data showed on Monday, handily beating a preliminary estimate of a 2.4 percent gain, and topping a median market estimate for 2.7 percent growth.

Jun 8, 2015

Japan economy grows faster than expected in first-quarter as firms ramp up capex

TOKYO (Reuters) – Japan’s economy expanded more than initially expected in January-March on solid growth in capital expenditure, underscoring the central bank’s view that a recovery from last year’s recession is gaining momentum.

The economy grew an annualised 3.9 percent in the first three months of this year, Cabinet Office data showed on Monday, more than a preliminary estimate of a 2.4 percent gain and exceeding a median estimate for 2.7 percent growth.