Japanese Economic Update – 08 February 2015
A positive start to the year for Japanese equity markets; yen rebounds as markets begin to price in a BOJ that remains on hold throughout the year
While lower oil prices may threaten the BOJ’s inflation target in 2015 and could still force policy makers to push out their projections for when the bank expects to see the 2% threshold met, we continue to see this particular disinflationary pressure as a net positive for Japan.
This is as lower oil prices will deliver a boost to the bottom line at both Japanese corporations as well as in the pockets of consumers, while the deferred tax hike and targeted tax cuts for the corporate sector should also help to coax the nation out of recession.
However, if price action in the currency markets is anything to go by, markets appear to factoring out the possibility of a fresh round of easing from the BOJ over the near term. This could hold negative connotations for equity markets if growth were to disappoint and oil prices were to continue their nascent rebound.
Therefore, after a modestly positive start to the year for the NIKKEI, we will watch closely over the coming months for any sign of under-performance in the economy as well as the potential for further action from the BOJ.
NIKKEI 225 / 10 Minute Intervals

.
IMPORTANT:
The contents of this report and the Stockatonia website (https://www.stockatonia.co.uk/) have been prepared to provide general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Please always remember that the value of investments may fall as well as rise. Investing in securities, and any other products associated with them, carries a high degree of risk and may not be suitable for all investors. For advice or guidance related to investing in securities markets, please consult with your own financial adviser.
Disclaimer
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.
Leave A Comment