Japan Wants GPIF to Boost Domestic Investments

WSJJul 10 14:00

Yen Weakness, Rising JGB Yields Could Spur Global Volatility -- Market Talk

WSJJul 7 09:10

Japan’s 'Shunto' wage increases have exceeded 5% for the third consecutive year, bolstering the Bank of Japan’s case for raising interest rates.

Final data from Japan's 'Shunto' wage negotiations show that average corporate wage increases reached 5.01%, marking the first time since 1989 that wage hikes have exceeded 5% for three consecutive years. This reinforces the Bank of Japan's assessment of a virtuous cycle between wages and prices, providing critical support for continuing monetary policy normalization. Market expectations now place the probability of an interest rate hike by December at 93%.

wallstreetcnJul 4 17:13

Bit of Volatility Could Be Good for Yen -- Market Talk

WSJJul 3 19:09

The worst-case scenario for the yen has entered traders’ radar, with the 200 level shifting from 'unthinkable' to a medium-term tail risk.

The yen has fallen to a nearly 40-year low against the U.S. dollar, driven by the interest rate differential between the U.S. and Japan, Japan's delayed monetary tightening, and its high debt burden. Institutions anticipate that, under extreme scenarios, the yen could depreciate to the 200 level. Markets view government intervention as merely a temporary speed bump, with the primary risk now being a disorderly collapse triggered by the failure of such interventions.

wallstreetcnJul 2 13:14

Japan's top foreign exchange official stated that the intervention in the yen market two months ago was effective, and some U.S. officials also supported it.

Atsushi Mimura, Vice Minister for International Affairs at Japan's Ministry of Finance, defended recent foreign exchange intervention measures, stating they achieved the intended effect and noting that the U.S. side raised no objections and even expressed support. Mimura did not repeat the Ministry’s previously common phrasing such as 'ready to act at any time against excessive volatility.' Analysts believe that officials are deliberately downplaying verbal warnings, possibly to preserve the element of surprise for future interventions. The market widely views the range of 164 to 165 as the likely threshold for the next potential intervention.

wallstreetcnJul 1 15:20