Posts Tagged ‘ Bank of Japan ’

Japan exports improve most since 2010 over 10%

We seeing Abenomics arrow 1 & 2 having a huge effect on the exports.
That’s one full quarter of improving result , showing that the market is going right way .

Lets hope this continues .the big test will be the up and coming election , if Abe wins then we can see some proper structural changes , if he gets 2/3 majority we can see some constitutional changes !

The third arrow missed the target the first time hope his next aim is better

Japan exports improve most since 2010.

It has been three years since Japan enjoyed this level of exportation. In May, shipments shot up 10.1% from the previous year, marking the third consecutive month of improvement.

Shipment exports picked up in key markets such as the US, rising 16.3% from a year earlier, whilst shipments to China increased 8.3%.

A weaker Yen boosted exporters’ business in May, as it made Japanese goods cheaper overseas, thus increasing profits in an industry that Japan largely depends on.

Such positive date therefore boosts Prime Minister Shinzo Abe’s plan to revive the economy.

Morgan Stanley Analyst Shuji Tonouchi explained that the breakdown shows that export volumes are still a little weak, but demand from the United States is ‘doing well’. Overall, he added, “We can certainly say that exports are headed in the right direction”.

On the other hand, imports also rose by 10% in May from a year ago and therefore, the trade balance came to a deficit of 993.9bn yen. This marks the 11th straight month that Japan has posted a deficit, as energy import costs continue to be high after nuclear plants were shut down.

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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

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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Jim O’Neill Seminar -¥ / Japan / Aussie $ / Brazil Real

Well by sheer charm and standing in Tokyo I was able to get a seat to see a true master of the universe Goldman Sachs Asset Management Chairman Jim O’Neill.

•The Bank of Japan can achieve 2% percent inflation within two years and then may need to concern itself with containing prices if it succeeds .
If they are committed he said then they can ,Haruhiko Kuroda has pledged to do “whatever it takes” to beat deflation and plans to double the monetary base!

Goldman Sachslast week increased the outlook on Japanese Equites , my view has always been whatever Goldman does the market follows .
Outlooks for 2013
•Topix – 1,350
•Nikkei 225-16,000

By 2015 they see
•Topix – 1,600
•Nikkei 225-19,000

YEN- ¥
• He believes the consequences of “Abenomics” would be a $/Yen 105-110, but Y120 could happen faster with the US change not being quite so necessary.

Australia

•it’s overvalued !

“A currency I find the most interesting is the Australian $” O’Neill, &“The Australian dollar is significantly overvalued.”

Reason for this is foreign purchase of government debt .

Brazil Real
• The weak economy means there is no appreciation likely .

•Last week the central bank increased interest rate to control inflation.

Manchester United

Always the die hard fan , he’s looking forward for Manchester United winning their 20th title .

What a guy , what a company .

I am so glad that deVere Group is working with Goldman Sachs , it’s going to be amazing

https://www.devere-group.com/news/deVere-Group-Goldman-Sachs-Fund-Advisors.aspx

Tony Evans
Tokyo Japan

Picture was taken as screenshot off Berg.

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Yen Drops to Lowest Since June 2009 !!

What a cracking start to a Monday , Market Booming and Yen dropping .

The yen dropped to the weakest level since June 2009 as investors sold the currency amid concern measures to fight deflation. Also a lot of the companies now are re setting the hedging they have .

The yen was little changed after finance ministry data showed Japan’s current account surplus, the widest measure of trade, was larger than economists forecast

Lets enjoy this rally , Japan has waited for so long for this , may it last long .

Yen Rates :
$- 98.85
Euro -128.44
£ – 151.2
AUD – 102.086

Tony Evans ,

Bloomberg li

Re Blog Nigel Green – Bold move by Japan

Great post by our CEO talking about Japan ,
Abenomics there will be winners and loosers ,
Problem now is the “silver savers ” they have seen their income buying power increase over the last 20 years , if they start being a problem this could all be for nothing !

They control $7trillion ! In personal assets ,

Tony Evans

Nigel Green – Bold move by Japan

Having spent 20 years in the economic doldrums Japans new Prime Minister has attacked the stagnate economy with massive QE. The Bank of Japan is preparing to boost its balance sheet to 60 per cent of GDP by next year. In ther words its printing extra money to the equivalent of Turkey . Its a massive boast to the Japanese economy and think ultimately to the World economy. The US is picking up nicely, China is doing well, all it needs now is a European reaction. So far the only reaction from Europe is the European Central Bank primed the markets for a possible cut in interest rates to 0.5 per cent as soon as next month.

The massive QE in Japan caused the yen spiralled downwards as Haruhiko Kuroda, the new Governor of the Bank of Japan, used his first policy meeting to jettison the ultracautious approach championed by his predecessor and announce a doubling of his balance sheet in an explicit attempt to hit a 2 per cent inflation target.
The Bank of Japan’s radicalism surpassed analysts’ expectations: it is preparing to boost its balance sheet to 60 per cent of GDP by next year as it gobbles up government bonds and other assets.
Investors should consider more exposure as the World economies start recovery, and limit exposure to Govt Bonds. At some point interest rates will raise and when they do expect a massive fall in bond values.
Nigel Green deVere Group

BOOMING BOOMINGJapan’s Nikkei in best shape since 2008

Japan market is BOOMING !
I can feel a massive end to the year , my prediction of over 13,500 was thought of as crazy by many , today I have a big smile , lucky I am not one of those guys that will say I told you you so but I told you so !

Ride the highs and sell the lows ,

Tony Evans

Japan's Nikkei in best shape since 2008.

Japan’s Nikkei in best shape since 2008

The Japanese stock market hit its highest level in almost five years on Friday, after the Bank of Japan ambitious stimulus plan raised hope of economic revival, after years of slow growth.

The main Nikkei 225 stock index climbed as much as 4.7% to 13,225.62 earlier today – its highest since August 2008. By the end of the trading day, the Nikkei closed up 1.58%.

Meanwhile, the Bank of Japan said on Thursday that it plans to double the country’s money supply in an attempt to spur growth and stop prices from falling. The news took investors by surprise as it was a much bigger step than expected and therefore signalled a more aggressive approach towards accelerating economic growth.

Analysts praised BoJ Governor Haruhiko Kuroda’s bold moves for his understanding of how global markets and investors would react when it comes to monetary policy.

The so-called Abenomics, Prime Minister Shinzo Abe’s economic policies, have drawn attention of investors who were not previously interest in Japan, according to Economists.

By pumping more money into the system, Japan is hoping to promote price growth, ending a cycle of deflation, recession and sputtering economic recovery. Concurrently, it is also hopes to weaken its currency in order to boost exports.

Notably, in the past two days alone, the Japanese yen declined 4.5% against the US dollar and more than 5% against the Euro.

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