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Global Market Quick Take: Asia – December 19, 2023
USDJPY bounced to 142.60 ahead of the Bank of Japan's monetary policy decisions. The BoJ is expected to maintain current policies, and traders await signals if there will potentially be a January move. Brent crude rose 1.9% to $78.0 as BP halted Red Sea transits due to Yemeni militant threats. The S&P 500 gained 0.5%, and the Nasdaq 100 added 0.6% to 16,730, led by major tech stocks. However, Apple slid 0.9% after announcing a U.S. sales suspension of some Apple Watch models due to patent issues. table US Equities: The S&P 500 gained 0.5%, extending its rise to 4,741. The Nasdaq 100 added 0.6% to 16,730, driven ... (full story)
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Asian shares and the yen steadied early on Tuesday as traders' focus turned on Japan's central bank and whether it might edge further away from its ultra-easy monetary policy, ...
History shows us that the biggest risks in a typical year aren't usually from out of left field (although that sometimes happens, as it did in 2020 with the COVID-19 outbreak). ...
Members commenced their discussion of international economic developments by noting that the information on global inflation had been a little more encouraging over the prior month. Headline inflation rates had declined, driven by a fall in oil prices, while core inflation had continued to ease. Goods prices had declined in some countries in preceding months. However, inflation in the services sector had declined only gradually, reflecting still-tight labour markets, and housing inflation remained strong in a number of countries. Central banks generally expected inflation to return to their targets in late 2024 or 2025. Members observed that output growth in several advanced economies had slowed noticeably in response to tighter monetary policy and cost-of-living pressures, particularly in Europe. In the United States, output growth had held up better than expected, helped by resilient consumption. Labour markets remained tight, but conditions had clearly eased in response to the slowing in economic activity. Job vacancies had fallen and unemployment rates, while still very low, had increased over preceding months, including in the United States. The pace of wages growth remained above levels considered consistent with central banks’ inflation targets for some economies, but they had generally moderated in response to the gradual easing in labour market conditions and inflation. As a result, core inflation was expected to continue to moderate. Turning to developments in China, members observed that the latest indicators of activity had generally been positive, and growth in retail sales and industrial production in October had remained strong. Activity had been supported by the continued recovery in services consumption after the pandemic, along with a range of supportive fiscal policy measures. There had, however, been little sign of improvement in the property sector. Real estate investment had continued to decline because of weak demand and liquidity constraints facing property developers. Nonetheless, the continued positive information about the Chinese economy outside the propert post: RBA: BOARD CONSIDERED WHETHER TO RAISE RATES BY 25 BPS OR HOLD STEADY. post: RBA: WHETHER FURTHER TIGHTENING REQUIRED WOULD BE DECIDED BY DATA AN ASSESSMENT OF RISKS. post: RBA: RISK INFLATION COULD STAY HIGH TOO LONG BALANCED BY RISK OF SHARPER SLOWDOWN IN DEMAND post: RBA: BOARD NOTED RBA STAFF FORECAST HAD INFLATION RETURNING TO TOP OF BAND BY END 2025 RATHER THAN MIDPOINT.
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At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided upon the following. (1) Yield curve control a) The Bank decided, by a unanimous vote, to set the following guideline for market operations for the intermeeting period. The short-term policy interest rate: The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank. The long-term interest rate: The Bank will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent. post: BoJ Voted Unanimously On Policy Rate - To Keep Easing Patiently For Price Goal With Wage Gains - Will Add To Easing Without Hesitation If Needed - Y/Y CPI Rise Likely To Be Above 2% Through FY2024 - Underlying CPI Likely To Gradually Rise - Economy Likely To Continue Recovering…Bank of Japan sticks to ultra-easy monetary policy in light of ‘high uncertainties’ The Bank of Japan left its ultra-loose monetary policy unchanged at its final policy meeting this year in light of “high uncertainties” in the world’s third-largest economy, saying that core inflation will stay above 2% throughout fiscal 2024. The BOJ decided unanimously that it would keep interest rates at -0.1%, while also sticking to its yield curve policy that references the 1% upper bound for 10-year Japanese government bonds as its limit. Bank of Japan’s possible moves to unwind its super easy monetary policy are being challenged by a slowing economy and cooling inflation. Most economists expect Governor Kazuo Ueda to only make changes next year, particularly after the annual spring wage negotiations confirm a trend of meaningful wage increases, which the BOJ believes is crucial to achieve sustainable inflation by boosting consumption. Comments from Ueda earlier in December stoked expectation of a change in monetary policy, sparking a rally in the yen. The BOJ has been cautious in unwinding its long-held ultra-loose monetary policy, wary that any premature move could jeopardize recent nascent improvements. It has “patiently continued” with its superBOJ stands pat amid expectations for policy normalization The Bank of Japan on Tuesday kept its key policy levers unchanged as expectations grow that it will end its negative rate policy amid sustained inflationary pressure. In its policy statement released after a two-day board meeting, the BOJ kept a line indicating its easing bias. The statement also kept an inflation overshooting commitment, which obliges the BOJ to "continue expanding the monetary base until the year-on-year rate of increase in observed CPI exceeds 2% and stays above the target in a stable manner." Short-term rates will be guided to minus 0.1% as before, while the 10-year Japanese government bond (JGB) will be guided with an upper limit of 1.0% as a reference point -- matching what the BOJ decided in October. The policy, known as yield curve control, has been in place since 2016. The unchanged decision was widely anticipated. All but one of 28 economists surveyed by Nikkei QUICK News between Dec. 1 and Dec. 6 expected no change. The decision comes as consumer inflation has spread from food and energy to services -- the latter including hotel prices, mobile phone usage fees and apartment rents -- raising the prospect of sustained inflation. The meeting came after the U.S. Federal Reserve on Wednesday signaled an end to its most aggressive monetary tightening in fo
Prosecutors on Tuesday searched the offices of two major ruling Liberal Democratic Party factions over a political fundraising scandal, in a further blow to Prime Minister Fumio ...
The yen fell broadly on Tuesday after the Bank of Japan (BOJ) kept its ultra-loose monetary policy unchanged and maintained its forward guidance in a closely awaited decision. The ...
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- Posted: Dec 18, 2023 9:13pm
- Submitted by:Category: Fundamental AnalysisComments: 0 / Views: 3,258