Markets Have Lost Enthusiasm for Takaichi | World Business Watch | WION
Well, the market’s enthusiasm for Sonai Takahayichi, Japan’s new prime minister, has waned. The value of Tokyo listed companies dropped over $127 billion last week. The yen and government bonds have also fallen sharply while consumers have reason to cheer Takishi for the biggest round of extra spending since the pandemic. However, investors are worried that Japan may be spending beyond its means. They also express concerns that the Bank of Japan looks less likely to hike rates to control inflation. Some large asset managers have begun targeting weaknesses in Japan’s debt market. The yen has continued to languish, making it the worst performing major currency against the dollar since Takai won the leadership. Finance Minister Satsuki Kayama warned speculators that the government may intervene to support the currency, but traders mostly ignored his warning, highlighting the difficulties that the government faces. Rodrigo Catel, a currency strategist at National Australia Bank said, and I’m quoting here, “The market is becoming desensitized to comments from Japanese officials.” He added that the yen was turning into a toy to play with. Well, in the stock market, risk go beyond jitters related to stimulus. Japanese shares were swept up Friday in an Asia-wide slum that saw tech shares sell off heavily after rallying when Takahi took the reigns of power last month. The NIK225 index crashed 3.5% last week.
The market’s enthusiasm for Sanae Takaichi, Japan’s new Prime Minister, has warned. The value of Tokyo-listed companies dropped over 127 billion dollars last week. The Yen and government bonds have also fallen sharply. Consumers have reason to cheer Takaichi for the biggest round of extra spending since the pandemic.
#japan #yen #wion
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2 Comments
japan pm words to china was very harsh' she should be careful of here words' war is not a solution.
She's an amateur lapdog of the US. Of all the things she can do to improve Japan, it took her two weeks to plunge relations with China to a crisis. Guess which country has bigger capacity for escalation and who will get hurt more? It is like Russia vs Ukraine all over again. We thought the Japs were smarter than the Ukrainians. With government debt equivalent to 260% GDP already, I suggest there are far more pressing issues within Japan that its government should be focusing on.