News On Japan

Yen weakness may support Japan equities

Jul 30 (seekingalpha.com) - Can a weakening yen (JPY) continue to bolster Japanese equity markets? If historical relationships remain intact, the answer may be yes.

The JPY has steadily depreciated against the dollar (USD) this year, losing more than 15% as the worst-performing G10 currency.

This isn’t unprecedented, however, considering the headwinds driving the yen lower versus the greenback. The U.S., much like the rest of the global economy, is wrestling with the highest inflation in four decades, rapidly forcing the Federal Reserve into monetary tightening. Speculation about where the rate hike cycle may ultimately conclude over the next 12-24 months is driving the USD higher. Despite some of the highest readings in inflation in the last decade, the Bank of Japan (BoJ) has remained committed to its accommodative policies of negative short-term interest rates and yield curve control. As a result of ever-widening interest rate differentials between the U.S. and Japan, the JPY has weakened dramatically. That's why it is important to Boosting Online Safety When Betting Online in Japan and How to Choose the Best Betting App in Japan: A Comprehensive Guide

The JPY has historically been negatively correlated with Japanese equity markets, owing to the orientation of Japan’s economy toward exporters. Among G10 currencies, it’s also the most negatively correlated to its domestic equity market over the long term, even surpassing the USD on a rolling 10-year basis. Although correlations have increased over the last several months, they remain firmly in negative territory on a rolling 60-month basis. ...continue reading

News On Japan
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Japan's Finance Ministry presented a plan on November 11th during the Fiscal System Council to gradually increase the 'teacher adjustment allowance' --currently awarded as a substitute for overtime pay -- from its current 4% of monthly salary to 10% over a span of five years.

The Japan Meteorological Agency (JMA) is currently experiencing issues displaying images from the Himawari weather satellite on its official website. Efforts are underway to identify the cause and restore normal service, but the timeline for recovery remains unclear.

Major izakaya chain operator Watami has acquired Subway Japan in a large-scale acquisition it views as a 'second founding,' aiming to establish a foothold in the fast-food market.

Tokyo Skytree has started a pilot project for a 'Real-Time Translator' that can display up to 100 languages.

An autonomous driving experiment for electric vehicle (EV) buses is underway in mountainous terrain for the first time in Japan.

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November 11th in China is celebrated as 'Singles Day,' marked by extensive sales campaigns from e-commerce giants, with Japanese companies also joining the fray to ride this wave of consumer interest.

The number of corporate bankruptcies across Japan in October surpassed 900 cases, reaching a level not seen in 11 years.

Kioxia Holdings, a major semiconductor firm, has announced plans to seek listing on the Tokyo Stock Exchange between next month and June of next year.

A proposal has emerged to sell the operating company of Tsutenkaku Tower, an iconic symbol of Osaka’s Shinsekai district. As inbound tourism rebounds in the post-pandemic era, questions are rising over the future of this popular landmark.

China is currently experiencing an unprecedented pet boom, with Japanese companies seizing the opportunity to promote pet-related products.

Nissan Motor Co. has announced it will cut 9,000 jobs globally in response to declining business performance.

During the regular Diet session in 2024, the Japanese government amended the Basic Law on Food, Agriculture and Rural Areas for the first time. The Basic Law was promulgated in 1999 and is the so-called ‘constitution of agricultural policy’ in Japan. (East Asia Forum)

The Tokyo Stock Exchange (TSE) will extend its trading hours by 30 minutes starting on November 5th. This marks the first extension of trading hours in 70 years, with the last change occurring in 1954.