Is Japan about to recover? Here’s what the latest numbers suggest
The yen once again lost
ground finishing around 111.55, due to worse than expected economic news.
Disappointing consumer spending and retail sales
results weighed down the yen in both Asian and European trading tonight and the
currency finally broke the 111 figure for the first time in three weeks.
Japanese Household spending dropped a whopping —3.5% against expectation of a
rise of 0.9% on a month over month basis. Tomorrow the market will focus on
Industrial Production expected to register a month over month decline of —1.5%.
However, the Nikkei 225 shrugged off the
news, finishing higher at 12,453.14. Aeon, Japans largest retailer
increased it’s operating forecast by 20%. Toyota a loser yesterday, made up lost
ground with a gain of 2.25%, although in a report released today Vehicle
Production was down 2.5% on a year over year basis. Other big gainers included
the steel makers Kobe Steel Ltd., Nippon Steel Corp., and banks
Mizuho Financial Group Inc. and UFJ Holdings Inc.
Bonds performed as expected with a rising market
and mixed economic indicators. The yield on the benchmark 1.3 percent bond due
in June 2015 rose 1 basis point to 1.365 percent.
Boris Schlossberg serves as Senior Currency
Strategist with Forex Capital Markets in New York, the largest retail forex
market maker in the world. He is a monthly contributor to SFO Magazine with
articles focused on understanding proper risk management, trader psychology and
true market structure. He is also a featured expert at
www.fxstreet.com and a frequent
commentator for the Marketwatch From Dow Jones Currency and Bond Report
sections.