A 'Deep Dive' into Japanese Markets on RTHK "The Close".
Neil Newman
Head of Strategy at Astris Advisory, Founder JAPANMACRO.com, Director Senrigan Capital Group Limited
Carolyn Wright kindly invited me onto Hong Hong RTHK Radio 3 "The Close" today for a relative deep dive on Japan, what has happened in the markets and what is coming up next week.
Today’s Stock Market Dominated by earnings, rewarding good numbers and severely punishing misses. Nikkei 225 / Topix / JPX Nikkei 400 differing moves.
Today’s FOREX market watching the yen, intervention risk and is is intervention a 'waste of time'. I think it is somewhat misunderstood who does what (BoJ and MoF) and why.
Not just a strong dollar vs yen, the yen weak against Asian currencies. And not just interest rate differentials and no repatriation of Japanese profits. Potential for trade friction or a currency war as Sth. Korea, Taiwan and China may pressure. Last time yen was 160/$ was mid-1980’s in a trade war with the US.
Household spending numbers today. Though weak, not as bad as expected and earnings for some consumer goods companies have been good.
Past Week Sectors: Strong - Shippers, Metal Products, Consumer products; Weak: Autos, Transport, Electronics parts - sums up the concerns exports/input costs. Share buy-backs as well as inbound and local consumption driving stocks, which could possibly fade if the tourism trade falters.
Next Week Outlook – focus on the yen/MoF/BoJ. Rates. Thursday important data release Q1 GDP, March Industrial Production.
To listen to the interview, please click HERE and navigate to "View From Japan".
Happy hunting and have a great weekend!
Best,
Neil