Bloomberg: Abenomics has chance to reshape Japan

[CityFarmer]

Yen is continue on its appreciation path...

Yen surges after Bank of Japan skips stimulus
29 Apr 2016 06:40
[NEW YORK] The yen surged about three per cent against the dollar on Thursday after the Bank of Japan left markets in shock by failing to deliver more stimulus for the struggling Japanese economy.

Traders had widely expected the central bank to unveil fresh measures to shore up the world's number-three economy after this month's deadly earthquakes in southern Japan and a series of weak data.

But, after a two-day meeting, the BoJ announced it would stand pat, saying it wanted to gauge the effects of the negative interest rate policy introduced in January.
...
AFP

Source: Business Times Breaking News

[CityFarmer]

The institutional investors are defying the BOJ plan...

BlackRock lures US$1b to bond ETFs in Japan on minus rates
13 May 2016 00:05
[TOKYO] BlackRock Inc is flying specialists to Tokyo to pitch exchange-traded funds to Japanese banks and insurers hurt by negative yields.

The nation's institutional investors have parked about US$1 billion in BlackRock's fixed-income ETFs since the Bank of Japan's Jan 29 announcement of its minus-rates policy, said Jason Miller, head of the ETF unit in Tokyo at the world's biggest provider of such funds. The New York-based firm this week introduced a product that tracks the performance of US Treasuries for its Japanese bank clients with an option to hedge currency risks.

"We have seen a significant amount of inflow into our global fixed income ETFs from Japanese institutions," Mr Miller said in an interview Thursday.

"The underpinning of that trend has been the natural shift from large institutions out of JGBs into the global fixed income exposures and equities. It's accelerated by the negative interest rate."
...
BLOOMBERG

Source: Business Times Breaking News

[CityFarmer]

Latest update on Abenomics...

Abe postpones Japan's sales-tax hike until late in 2019
01 Jun 2016 12:51
[TOKYO] Japanese Prime Minister Shinzo Abe told lawmakers in Tokyo he would delay an increase in Japan's sales tax until 2019. The move may help support consumer spending but complicates the government's efforts to tame the world's largest debt burden.

The tax decision marks an about-face for Mr Abe, who had previously said only an economic shock on the scale of the Lehman Brothers collapse or a major earthquake would prompt a delay.
...
BLOOMBERG

Source: Business Times Breaking News

[CityFarmer]

Abenomics, is getting lesser support...

Angry banks complicate BOJ's ability to deepen negative rates
10 Jun 2016 21:23
[TOKYO] The Bank of Japan may have run into an unexpected obstacle as it considers expanding its extraordinary stimulus programme as soon as next week - the wrath of the country's powerful but typically compliant banks over pushing interest rates deeper into negative territory.

Bond traders were stunned this week when Bank of Tokyo-Mitsubishi UFJ (BTMU), one of the nation's three megabanks, said it was giving up its status as a primary dealer of Japanese government bonds (JGBs), though the news did not immediately affect prices.
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REUTERS

Source: Business Times Breaking News

[CityFarmer]

Japan's Abenomics, is probably the one suffering the most from Brexit in Asia. 

Japan PM Abe instructs finance ministry to take foreign exchange steps as needed
27 Jun 2016 08:25
[TOKYO] Japanese Prime Minister Shinzo Abe said on Monday he has instructed Finance Minister Taro Aso to watch currency markets "ever more closely" and take steps if necessary, in the wake of Britain's historic vote to leave the European Union.
...
REUTERS

Source: Business Times Breaking News

[gzbkel]

Japan Inc's take on why vested interests is preventing Abenomics from working:

http://www.japaninc.com/tt856_why-abenom...l-not-work

[gzbkel]

Part II of Japan Inc's article on Abenomics
http://www.japaninc.com/tt858_abenomics-...to-be-done

[gzbkel]

Increasing public interest in investing in Japan?

http://www.japantimes.co.jp/news/2016/07...ected-dry/

[CityFarmer]

An exception from theories of Economics...

Higher employment means higher household spending right? Not in Japan

INGAPORE (Aug 31): Household spending in Japan has bucked conventional economic theory, falling 0.5% in July even as the unemployment rate fell to 3% in the same month, says a Wall Street Journal report on Tuesday.

That means that while companies have hired more workers, consumers are not feeling confident enough to spend more, even as the country’s labour market is at its strongest in over two decades.
...
http://www.theedgemarkets.com.sg/sg/arti...-not-japan

[CityFarmer]

The cheap debts, have indirectly supported Softbank's oversea acquisitions?  

Japanese companies issue record amount of debt to secure cheap funds
19 Sep 2016 12:19
[TOKYO] Japanese companies have sold a record amount of bonds this quarter, taking advantage of negative interest rates and yield-starved investors to lock in cheap long-term funding.

For the July-September quarter, Japanese companies are on track to issue over 4 trillion yen (S$53.5 billion) in bonds, more than double the 1.5 trillion yen booked in the same period last year, according to data from DealWatch and Thomson Reuters.

Strikingly, 1.83 trillion yen of the debt is in maturities of more than 20 years, versus just 70 billion yen in the same period last year.

The surge comes after the Bank of Japan adopted negative interest rates in February as part of its stimulus measures.

Tokyu Corp sold 10 billion yen of 20-year bonds and 10 billion yen of 30-year bonds on Friday, following a spate of issues from big names such as Softbank Group Corp and Mitsubishi Corp.
...
REUTERS

Source: Business Times Breaking News