Can Japan's Stock Market Continue Its Record-Setting Run?

Japan’s equity benchmark, the Nikkei 225 Index, has eclipsed its previous high set in 1989. Solid economic growth, a revamp in the country's tax-free stock investment program and corporate governance reform have helped propel Japanese equities to record highs. We believe the market has room to climb further due to a positive cyclical backdrop.

The Tides Of Time: The Impact Of Aging Demographics

Weekly Report: what happened at GSJY last week (0408-0412)?

The Bank of Japan's New Path Ahead

The Bank of Japan is set to normalise monetary policy when certain conditions are met. In March, the BoJ raised rates for the first time in 17 years. ING expects inflation to fall below 2% and a recovery in domestic demand growth to support growth in 2024. The market is pricing in a 25bp hike by the end of the year.

Springtime For Japanese Stocks

Japan may be blossoming again. Goods and wage inflation are returning, some companies are embracing real and significant corporate reforms, and the equity market has surged. The Japanese economy appears to be emerging from years of stagnation. A third of companies in Japan have price-to-book ratios below one.

Broaden Your Investment Horizons

It may be time to look beyond the U.S. For equity market performance. Looser monetary and fiscal policy could add momentum to what already appears to be a global cyclical recovery. Europe could cut its interest rates sooner than the United States. Europe's manufacturing activity could get a boost from stimulus.

Weekly Report: what happened at GSJY last week (0401-0405)?

The Paradox Of Japan's Negative Rates

After the Bank of Japan cut rates below zero in January 2016, the yen gained 10% against the U.S. Dollar. The yen sold off while the Nikkei 225 rallied. The recent hike in interest rates may end up further stimulating, instead of slowing, economic growth. Negative rates act as a tax on the banking system rather than stimulating growth.

Weekly Report: what happened at GSJY last week (0325-0329)?

Japan: Stronger-Than-Expected Retail Sales, Softer-Than-Expected Industrial Production

Tokyo consumer prices unexpectedly rose 2.6% year-on-year in March. Industrial production unexpectedly dropped again in February. Tokyo inflation hasn't changed much above the 2% level. The Bank of Japan will pay more attention to the improvement in retail sales and sticky inflation.

Japan Ends Its Negative Interest Rate Policy

Bank of Japan ended its negative interest rate policy on March 19, 2024. Higher interest rates and rising inflation expectations are positive for the Japanese equity market. We are positive on Japanese banks, industrials and consumer discretionary companies. The impact of the policy change on the USD-JPY rate is likely to be gradual.

Weekly Report: what happened at GSJY last week (0318-0322)?

Dynamics Down Under: Deciphering APAC's Economic Landscape

Home Market Outlook Economy Analysis Dynamics Down Under: Deciphering APAC's Economic Landscape. The Asia-Pacific region stands at a pivotal juncture. Wei Li, Global Chief Investment Strategist for BlackRock joined Oscar Pulido to discuss the intricacies of high inflation in the region.

The End Of Japan's Negative Interest Rates: What It Means For Gold

Bank of Japan's historic move to end the country's negative interest rate policy triggered a jolt upward to new all-time highs for gold against the yen. The BoJ announced it will now hold short-term rates at a still-accommodative 0% to 0.1%. The yen initially rose against gold as the BoJ expected to increase interest rates, but the price has since stabilized. If the Japanese consumer sees prices rise too much, the relative strength of gold is likely to increase.

From Negative To Neutral In Japan

Bank of Japan announced an end to its negative interest rate policy on Monday. The BoJ has set a new policy rate range of 0% to 0.1%, moving up from a -0.1% short-term interest rate. The Bank of Japan takes a cautious step towards normalization.

Japan Flash PMI Signals Accelerating Growth Momentum And Rising Inflation In March 2024

Japan's private sector picked up growth momentum into the end of the first quarter, according to flash PMI data. The service sector expanded at the fastest pace in ten months. Price pressures intensified leading to higher output price inflation. Optimism among Japanese private sector firms also improved in March.

End Of An Era - Bank of Japan Reverses Negative Interest Rate Policy

Bank of Japan Reverses Negative Interest Rate Policy. The BOJ raises short rates from -0.1% to 0.1%. The Bank of Japan is the last central bank to exit a negative interest rate policy. Wage hikes exceeding expectations drive the BOJ's policy change.

The Japanese Stock Rally May Have More Room To Run

"Abenomics," an ambitious economic plan created by late prime minister Shinzo Abe, laid the groundwork for today's Japanese stock rally. Attractive valuations, cash on the sidelines, and monetary policy could drive Japanese equities higher going forward. Abenomics was designed to pull the Japanese economy out of stagnation.

Flash Insights: Bank of Japan - A 'Watchful' Adjustment

Bank of Japan raised interest rates for the first time since 2007 and has eliminated the yield curve control framework. According to the central bank, the virtuous cycle between wages and prices was assessed to have come into sight. The BoJ has found that a virtuous wage price spiral is in the works in Japan.

Bank of Japan Pivot Proves Underwhelming For Markets

Bank of Japan ends decades of unconventional and aggressive monetary easing. Strong wage negotiation results played a crucial role in the BoJ's move. The BoJ pledged to maintain accommodative monetary conditions. The market's immediate reaction was disappointing, says ING's Mars Yu. The April Quarterly Outlook report will be of interest to the market.