Posts Tagged ‘ Kuroda ’

Central Bank says Japan is ‘recovering’

The Bank of Japan issued a more upbeat assessment of the Japanese economy on Thursday, saying for the first time in more than two years that conditions were recovering.

TBOJ stuck with a pledge to expand the monetary base by 60 to 70 trillion yen ($709 billion) per year, as the economy is starting to recover moderately.

On this news the yen strengthened vs the USD to 98.76 .

What’s key for Abenomics is Prime minster is to win the July 21 election , this would end the split parliament , this would enable Abe to push through changes to increase the competitive of Japan economy .Lets see!

Abenomics has had such a great effect on changing the mood in Japan , that’s a huge success but isn’t enough to make Japan grow .

Bank of Japan – Economy is indeed recovering
For the first time in more than two years, the Bank of Japan issued an optimistic statement about the state of the economy, saying that conditions were recovering.

In a self-praising move, the BoJ said that the aggressive monetary easing measures it implemented in April are working to stimulate the economy and reverse consumer-price deflation.

Following a two-day policy meeting, the bank said in a statement that, “Japan’s economy is starting to recover moderately”.

This therefore signals that the central bank is unlikely to take additional steps soon.

The announcement marks the first time since early 2011 that the bank formally described the economy as being on an expansionary path. In fact, the bank’s official view has steadily brightened over the past six months.

Under Governor Kuroda, who took over last March, the BoJ has been pumping an unprecedented amount of money into the economy through increased purchases of government bonds. The board said on Thursday that it would stick with its goal of expanding Japan’s monetary base at a rate of Y60tn to Y70tn a year.

Following the announcement, the yield on the 10-year Japanese government bond has traded in a tight range between 0.79 and 0.96% for nearly two months now.


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.”

20130522-094538.jpg

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.

Nikkei Up 4%This morning !!

Nikkei open 4% !96.3$ ! This morning !!

Sitting at my desk I feel Japan is on the way to a BOOM ! Markets going crazy ,

I been in Japan 8 years and loved it in a depression , I don’t know what will happen when the markets boom , marriage made in heaven ?

Tony Evans , Tokyo

20130405-084304.jpg

Kuroda Stuns the market – Bank of Japan Boosts Bond Purchases

Bank of Japan (8301) Governor Haruhiko Kuroda 1 – 0 Deflation

Good Job Kuroda you promised the world and you delivered , this a Central Bank Governor that now has the confidence of the market and the world .

The central bank buy 7 trillion yen ($74.6 billion) of bonds a month!!! THAT BIGGER THAN Switzerland GDP PER YEAR !!!!!!!

Yen weakens against the $ – 94.122 AND THE NIKKEI turned A -1.5% LOSS to a 0.5% gain.

Watch this space Japan has declared war on deflation !!

BBC

Bloomberg

Kuroda Bank of Japan Governor – Japanese but with a Oxford mindset ?

Prime Minster Abe has now got everything in place for Abenomics to take effect ,

What a lot of people don’t know is that Haruhiko-Kuroda is a Oxford graduate and as such has a very different mind set to his predecessors , Shirakawa’s studies at the University of Chicago in Milton Friedman’s advocacy of low inflation and disciplined central banks in the context of well-run budget policy.

Kuroda said in parliament last week that he is well acquainted with U.S. Federal Reserve Chairman Ben S. Bernanke, European Central Bank President Mario Draghi and departing Bank of England Governor Mervyn King, very different to his predecessor as he is keen to get Japan back on the international stage.

So much has been placed on his shoulders , personally I think he is up to the task , I can see a economic revival here .

20130319-133941.jpg

%d bloggers like this: