Archive for the ‘ Japan ’ Category

deVere Group Japan attends reception with President François Hollande

On June 8th President François Hollande attended his first official visit to Japan to meet Prime Minster Abe .

During his visit he was very positive of Prime Minster Abe ‘ Abenomics ‘ economics policy and would like to take some ideas with him .

The President made a speech on the final day of his visit to Japan, saying that the potentially destructive debt crisis has served to “reinforce” Europe and foster greater integration of the 17 euro currency members.

He said authorities are developing tools to ensure greater stability and solidarity such as a Europe-wide “banking union” and budgetary rules.

“What you need to understand here in Japan is that the crisis in Europe is over. And that we can work together, France and Japan, to open new doors for economic progress,” he said in the speech at the Imperial Hotel organized by The Nikkei, a major financial newspaper.

Hollande called Japan an “exceptional partner” and urged both countries to invest more in each other economic development / success . France’s annual exports to Japan total about 7.5 billion euros (£6.3 billion), while its imports are just over 9 billion euros. Both rank 11th as respective trade partners.

deVere Group Intern Pierre Alexandre Pont with President François Hollande .

Jean-Louis Spotti, French Senior advisor at deVere Group Japan says ” Its good to see the President in Japan to highlight the significance of the French Japanese relationship” .

Tony Evans ,

Area Manager Japan deVere Group .

$600billion slump in Nikkei sees Monday up 3.38%

What a cracking start to the week , Nikkei is signaling that Japanese shares may arrest a three-week, $600 billion slump!

A slight policy change in Japanese pension funds is a big factor , as they will increase equity holdings . The pension funds holds multi TRILLIONS. And is looking to swap from bonds into equity .

Lets see how the weeks turns out ,I am long equity short yen and have increased my position this morning .

Lets lock and load

Tony Evans

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Good time to convert Yen ?

What a love hate relationship the market has with Abenomics ,
One week they love it , then they don’t , then they do !

Japan ( Prime Minister Abe ) is trying to change a whole country the way of thinking , the way they do business , international role ! I don’t envy his task at all but he has done so much so far , he is one of the highest approval rating of any G8 nation leader and he hasn’t been in power that long!

Yen should you buy or sell ?

All comes down to greed and fear factor .
If you converted ¥ today you get 5% more than you did 2 weeks ago . But I know what some of you are saying but if I converted last year I would have 30% more ! I totally agree with you , then I ask the question why didn’t you ? As you expected it to keep strengthening ?

USD / JPY

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Unemployment figures keep improving I see USD strengthening .

GBP/ YEN

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Looking at the figures coming out the UK the economy is improving at a quicker than expected pace ! £ strengthens .

Euro / Yen

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All comes down to the constitutional court ruling on the EBC bond purchases and is it legal !!
Beurocrats ! Mario Draghi had the balls to do something when the politicians did nothing .

AUD/ JPY

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Election is nearly upon us ! I can see the yen and the ozzy weakening . Could be around the 91.

My advice is if you happy with the price take it , if you in it to speculate and make money be careful , the market turn very quick and you could loose money !

Tony Evans

Japan Becoming Cheaper Place to Send Workers 6th place !- Wall Street Journal

Whoop! Abenomics is working , watch the flow of people back to Tokyo / Japan .

Lets hope Abenomics continues

Tony Evans

Japan Becoming Cheaper Place to Send Workers- Wall Street Journal Full article

Not only is Japan is becoming a cheaper place to swill your favorite sake, according to new research it’s also becoming a more affordable place for companies to send workers.

Thanks to its dramatic currency depreciation in recent months, Japan has started to shed its former notoriety as one of the priciest travel destinations on the planet. Between September and May, the Japanese yen plunged by around 30% against the U.S. dollar. Tourists have responded enthusiastically in droves, with the number of foreign visitors coming to Japan jumping 26% in March over the year before.

Likewise, human-resources consulting company ECA International said Thursday that for the first time in three years its research found that Tokyo no longer claims the world’s title as the most costly place in the world to send workers from overseas. This year, the city was overtaken by Norway’s capital of Oslo, and currently ranks as the sixth-most expensive location for expat workers in the world.

“It’s now cheaper, relatively, to employ staff in Japan and send staff there,” says Lee Quane, ECA’s Asia regional director, adding that he expects more banking and finance companies to be encouraged to add workers to the region. He also notes that it’s becoming more expensive for Japanese companies to send employees to certain locations overseas, as they now have to offer higher cost-of-living allowances.

Meanwhile, Mr. Quane says he expects the currency to continue to depreciate, though not necessarily as quickly as it has in recent months, and that Japanese locations will continue to grow cheaper in the coming months as a consequence.

Consistent with last year, across Asia, the cheapest place to send international assignees remains Karachi or Islamabad, Pakistan. In mainland China, Beijing continues to be the mainland’s most expensive city, ahead of Shanghai, Guangzhou and Shenzhen.

ECA’s survey also found that Seoul jumped significantly in its rankings and now clocks in as Asia’s third-most expensive location—up from number seven last year—thanks to greater inflation and currency appreciation. “Korea is starting to catch up with Japanese locations [in terms of price] and even take over in some places,” says Mr. Quane. According to ECA data, the cost of living in Seoul now eclipses Japanese cities including Yokohama, Kobe and Osaka.

ECA’s cost-of-living analysis includes factors such as the price of food and drink, as well as clothing and miscellaneous services. It doesn’t factor in housing costs, car purchases or school fees.

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Number of ‘super rich’ grows thanks to Asia

Number of 'super rich' grows thanks to Asia.

Asia’s rapid growth rate has helped to boost the amount of millionaires and “super rich” raising private wealth to record levels, according to a new report.

Private wealth increased 7.8% to $135.5tn in 2012 from the previous year, says Boston Consulting Group, the management consultancy. The total number of millionaire households reached 13.8m and the number of “super rich”, or households worth more than $100m, rose to about 12,000.

The rise in private wealth suggests the global economy is finally shrugging off the effects of the financial crisis helped by Asia’s rapid growth.

Asia’s private wealth increased to $28tn, a 17% jump on 2011 making it the fastest-growing region excluding Japan. The figure is projected to nearly double to $48.1tn over the next five years.

“The world seems to have put the financial crisis behind it with more millionaires and super rich people than before,” said Brent Beardsley, partner and managing director at BCG. “There could be another hiccup, but the world looks like it is recovering as the equity markets rise and the emerging world continues to grow.”

The US remains the wealthiest country, with Japan second, China third and the UK and Germany equal fourth. Qatar has the highest density of millionaires – 143 out of every 1,000 households.

Nikkei Stocks up 1.37% for the week !

What an end to a turbulent week in Tokyo , nearly 10% swings !

Friday stocks rose 1.37% on Friday, as a weakening yen helped the benchmark index rebound from the previous day blood bath of more than 5%.Thursday followed a week of wild volatility in the market which included a a plunge of 7.3%, the worst single-day fall since Japan’s 2011 quake-tsunami disaster.

Nikkei 225 index added 185.51 points to 13,774.54 .

Investor sentiment was buoyed by official data released Friday that showed Japanese factory output expanded by a better-than-expected 1.7% on-month in April, even as the nation remained mired in deflation.

FOREX

The dollar fetched 101.01 yen in Tokyo afternoon trade from 100.74 yen in New York late Thursday, while the euro also strengthened to 131.65 yen from 131.39 yen.

You can say one thing Tokyo ain’t boarding .

Tony Evans

Is this the end to the Nikkei rally and Yen weakness?

When the market opened in Tokyo stocks were widening their losses through the morning session Monday, with the Nikkei tumbling nearly 580 points to move around 14,000. The yen weighed on exporters while players remained jittery over recent volatility in the market.

Is this clients / investors selling ??? Technically yes , but reality is they are selling due to margin call .

This is how the market stands .

Market

Nikkei 225
14,157.34 – 455.11 -3.11%


Currency

 

USD

EUR

GBP

CAD

AUD

JPY

101.0000

130.5800

152.7500

97.7820

97.2550

 


 

Yesterday Bank of Japan Governor Haruhiko backed bullish views on asset marker and said Japan could cope with the increase interest rates .The minutes memo from the BOJ meeting on April 26 showed that a few members see difficulties in hitting the 2% inflation. When Kuroda came to power he unveiled a plan to double money in the economy over two years by ramping up bond purchases, chasing a target of 2 % inflation .

I don’t believe anything has changed in Japan the fundamentals have started to change , consumer spending is up and exports have increased also . I still see Nikkei going towards 17000 year end.

Greed and Fear that what moves the market . At the moment fear is rampant ,

 

Tony Evans

Key Points from the BOJ Meeting

Key Points from the BOJ Meeting

  • Bank of Japan on Wednesday raised its estimate of the economy for the 5 consecutive month amid signs of the recovery is under way .
  • Monetary policy unchanged as it seeks to beat deflation and generate 2% inflation in two years .
  • BOJ board decided unanimously to maintain its policy of increasing the monetary base at annual pace of Y60 trillion to Y70 trillion.
  • Takahide Kiuchi proposed that the central bank’s inflation commitment be characterized as something to be implemented in “the medium to long term,” and that the current easing policy be seen as “as an intensive measure with a time frame of about two years.” But his proposal was voted down 8-1.
  • BOJ made no mention of the recent rises in Japan government bond yields that have unsettled market participants

Basically they have made the choice of policy last month , now they have to wait and see if the policy take effect .

Watch this space .

 

Tony Evans

Image

http://www.bloomberg.com/news/2013-05-22/boj-affirms-easing-plan-after-biggest-jump-in-yields-in-5-years.html

http://e.nikkei.com/e/fr/tnks/Nni20130522D22JF676.htm

 

BOJ Meeting – What can we expect ? Another surprise from Kuroda ?

Bank of Japan started a two-day policy meeting, yesterday saw the yen strengthening and Nikkei fall. This morning we have the smell of optimism in the air .

Looking at this the market wants another Kuroda magic , or an intention of more stimulus . Could be a very interesting days ahead .Jitters over the recent volatility in bond markets, hoping it can prevent a renewed spike in yields by fine-tuning market operations.

I can see Kuruda increasing REITS purchases and that will have a huge impact on Japanese property, I can see the mortgage rates increasing ,so my view fix it know !

The economy is in such a better state since Abenomics started and Kuroda surprised the market , does Japan need more stimulus ? It’s like asking a child would you like more ice cream ! The market wants more.

Lets lock and load and see what the end of the weeks have in stall for us

Lets lock and load

Tony Evans

http://uk.reuters.com/article/2013/05/21/uk-japan-economy-boj-idUKBRE94K18G20130521

What Bloomberg was talking about :

http://www.bloomberg.com/news/2013-05-22/asia-stocks-rise-before-bank-of-japan-ends-policy-meeting.html

Asian stocks rose, with the regional benchmark index trading at a five-year high, before the Bank of Japan concludes a two-day policy meeting. Trading on Hong Kong equity markets will be delayed due to a storm warning.
Sony Corp. (6758) surged 9.6 percent in Tokyo after Japan’s Nikkei newspaper reported the company’s board may discuss spinning off its entertainment division. Seven West Media Ltd. (SWM) sank 6.6 percent after KKR & Co. sold a stake in Australia’s most-watched television broadcaster.
The MSCI Asia Pacific Index advanced 0.5 percent to 144.82 as of 10:19 a.m. in Tokyo, before markets in China and Hong Kong opened. Nine of the 10 industry groups on the gauge climbed. The measure surged 11 percent this year through yesterday as U.S. economic data improved and the Japanese central bank took steps to counter deflation.
“It is a fairly big day ahead for the yen, with the BOJ set to hit the wires,” said Stan Shamu, a market strategist at IG Markets Ltd. in Melbourne, a trading services provider. “This is likely to be the key event in Asia today and will have an impact on the whole risk space. With no policy change expected, traders will be looking for comments regarding efforts to stabilize the bond market.”

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Could the Yen start to strengthen again ?

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This morning I watched the yen climbing against all major currency in reaction to the Japan’s Economy Minister Akira Amari said a even weaker yen would harm the economy and the people.

I believe the strengthening of the Yen was based on this but also on reaction of North Korea missile launch . The Nikkei continued its advances just showing that they didn’t take notice of the Yen strengthening .

The morning saw the Yen strengthening as much as 1.1%, then calming down ti 0.4% pat 102.86 per $ .Considering the Yen touched 103.31 on Friday , was I surprised ? No as this was simple profit taking .

With the USA economy strengthening and know the Federal Reserve talking about the reduction of quantitative easing , things are looking positive as the dollar the advantage from the perspective of fundamentals . Fed Chairman Ben S. Bernanke is scheduled to speak to the Joint Economic Committee of Congress on May 22. Minutes of the Fed’s last policy meeting will be released the same day.

This could be the end of the $85billion a month stimulus .But considering that Japan just started its stimulus this could have a positive effect on Yen ( if you of the opinion a weaker yen is positive ) as then the Yen will becoming the carry trade again . Looking at this 110/120 is very likely .

So No I cant see the yen strengthening I can actually see it weakening by another 10/20% .Abenomics has unleashed a wave of cheap money and I cant see them able to control this genie they released , but it is creating a positive buzz and that’s all it needed to do .

Tony Evans
Tokyo

http://www.bloomberg.com/news/2013-05-19/yen-climbs-as-japan-signals-negative-impact-from-further-losses.html

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