Tag Archives: Japan economy

Japan’s central bank has little room for further easing despite a downbeat outlook. At its monetary policy meeting on 30 July, the Bank of Japan (BoJ) decided to keep its monetary policy unchanged, as expected. The decision came as the Japanese economy faces strong external headwinds and a downbeat outlook for domestic demand. However, we do not expect the BoJ to make any changes to its current monetary easing...

Japan's central bank has little room for further easing despite a downbeat outlook.At its monetary policy meeting on 30 July, the Bank of Japan (BoJ) decided to keep its monetary policy unchanged, as expected. The decision came as the Japanese economy faces strong external headwinds and a downbeat outlook for domestic demand.However, we do not expect the BoJ to make any changes to its current monetary easing framework until H1 2020 as it has probably reached the limit of its easing capacity....

Japanese economy expands below expectations, while external uncertainties weigh on outlook.Japanese GDP rebounded by 0.3% quarter-on-quarter (q-o-q) in Q4 (1.4% annualised) after contracting by 0.7% q-o-q in Q3 (-2.6% annualised) due to a series of natural disasters over the summer. In year-over-year (y-o-y) terms, output remained virtually unchanged.Domestic demand was the main driving force for the rebound in Q4, while external demand continued to be a drag.A fairly strong domestic capex...

SUMMARY Japan’s services PMI surged by 2.2 points to 52.4 in October after a notable drop in September. The manufacturing PMI rose modestly to 52.9 in October from 52.4 in September. The strength in services PMI may suggest momentum in Japan’s domestic economy remains solid. Consumption recovery and expansion of corporate capex are driving growth. However, headwinds are building on the external fronts. Elevated trade...

The domestic economy is retaining its momentum, but external headwinds are building.The Japanese services purchasing managers index (PMI) rose sharply in October, surging by 2.2 points to 52.4, after a notable drop in September. The manufacturing PMI rose as well, but more moderately, reaching 52.9 in October from 52.4 in September. The rise in services PMI suggests domestic demand remains solid. On the one hand, household consumption is recovering. Retail sales have undergoing an expansion...

There are plenty of arguments for and against a Japanese equity market whose fortunes are tightly linked to the strength of the yen and the success of Abenomics.Since mid-December 2012, when Shinzo Abe came to power, to end-June 2018, the TOPIX increased by 12% in local currency terms on an annualised total return basis, a significant achievement that owes much to ‘Abenomics’. At the same time, the Bank of Japan (BoJ) has had a direct impact on equities through its commitment to buy 6...

The latest GDP data confirm the economy is expanding steadily. While we have slightly lowered our growth forecast for this year, our 2018 forecast remains unchanged.Japanese GDP for Q3 came in at JPY545.8 trillion annualised, rising 1.4% q-o-q and 1.7% y-o-y in real terms.The data are broadly consistent with our view of a moderate deceleration of the Japanese economy in H2 after a strong Q2. The positive growth in Q3 marks the seventh consecutive quarter of economic expansion in Japan, the...