Weekly Thoughts

With long term rates in key developed economies rising fast as investors come to realisation that core inflation rates will remain well above the targeted 2% level for the foreseeable future, appetite…

Japan’s stock market has been in vogue for much of this year, supported by its attractive valuations, continued improvement in corporate governance, restructuring and improving shareholders returns. This said, we have had…

We have long argued that BOJ’s ultra loose stance could prove to be a grave policy error as it has not only failed to encourage banks to lend more aggressively given that…

The recent rebound in the value of the Japanese currency against the greenback will undoubtedly come as a relief to Japan’s economic policy makers as pressure on BOJ to respond to yen’s…

In the past few weeks, we have tried to address the implications of the yen currency crisis currently unfolding, and potential dangers of it manifesting into a contagion in Asia and possibly…

BOJ’s continued inaction followed by dovish statements in support of its ultra-loose policy have left currency traders increasingly confident in shorting the yen. We view the central bank’s policy errors not only…

Japan’s central bank left its monetary policy unchanged with its governor, reiterating the view that the bank thinks inflationary pressures will fall off below 2% and Japan’s economy is still too fragile…

Net capital inflows into Japan’s equity market are continuing and with yen remaining weak, there is near term earnings support for multinationals listed in the Nikkei 225 index which global funds typically…

BOJ cheif, Ueda-san’s latest admission that the central bank’s outlook for falling inflation rate could be wrong was significant. His comments may imply that the bank could be considering dropping its insistence that…

Following the last two weeks of client visits in Asia, we came away somewhat surprised about how quickly sentiment has turned very positive on Japanese stocks. To be sure, China’s disappointingly uneven…