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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIt's going to be a 'brutal outcome' for Japan's ruling party in this general election: ProfessorKotaro Tamura from LKY School of Public Policy shares predictions on the upcoming Japan elections and explains why a majority is unattainable by the current ruling coalition.
Persons: Kotaro Tamura Organizations: LKY School of Public Locations: Japan
Dollar weak as traders add to wagers of big rate cut from Fed
  + stars: | 2024-09-13 | by ( ) www.cnbc.com   time to read: +3 min
While the Fed is all but certain to cut rates next week, uncertainty around whether it will go with a 25 basis point cut or 50 basis points has kept investors on the edge and weighed on the dollar. Analysts pointed to media reports from the Financial Times and the Wall Street Journal suggesting the Fed's decision would be a close call as one of the reasons for traders adding to wagers of a big rate cut next week. Higher U.S. jobless claims data released on Thursday and the Wall Street Journal article on the Fed's rate cut dilemma revived bets on a jumbo cut at the September meeting, according to Christopher Wong, currency strategist at OCBC. Besides the Fed, the Bank of England and Bank of Japan hold policy meetings next week. "Risks remain that inflation may not return to target as easily as everyone, including the Fed, seems to expect."
Persons: Christopher Wong, Christine Lagarde, Ryan Brandham, Naoki Tamura, Sterling, BoE Organizations: Federal Reserve, Financial Times, Wall, Traders, European Central Bank, Fed, Bank of England, Bank of Japan, Validus Risk Locations: North America
Dollar firm as inflation data douse bets for big Fed rate cut
  + stars: | 2024-09-12 | by ( ) www.cnbc.com   time to read: +3 min
The dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in U.S. inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week. The dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in U.S. inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week. Meanwhile, a quarter-point rate reduction from the European Central Bank is widely expected later on Thursday, with investors anxious for hints on how soon the monetary authority will cut again. Early on Wednesday, Bank of Japan board member Junko Nakagawa reinforced the central bank's tightening bias by saying low real rates leave room for further rate hikes. As a result, traders essentially priced out the chances of a 50-basis point rate cut on Sept. 18, paring the odds to 15% versus 85% probability for a 25-bp reduction.
Persons: Junko Nakagawa, Naoki Tamura, Tony Sycamore Organizations: Federal, European Central Bank, Bank of Japan, IG, ECB, Sterling, Swiss Locations: U.S
Yen hits 34-yr low ahead of key U.S. inflation data
  + stars: | 2024-03-27 | by ( ) www.cnbc.com   time to read: +2 min
Japanese yen banknotes of various denominations are arranged in Kawasaki, Japan, on Friday, June 23, 2023. The yen briefly traded at 151.97 per dollar in the Asia session, down about 0.2% and its weakest since mid-1990. China's yuan and the New Zealand dollar traded near four-month lows. The yuan weakened to 7.2285 per dollar despite a strong fix of its trading band. The New Zealand dollar fell 0.2% to $0.5988, not helped by a downward revision to the government's economic growth forecasts.
Persons: Rodrigo Catril, Naoki Tamura Organizations: National Australia Bank, Bank of Japan, New Zealand Locations: Kawasaki, Japan, Asia
How cuteness has taken over our world — and why — is a subject being explored in “Cute,” a new (and the first ever) exhibition devoted to the movement at London’s Somerset House. The Industrial Revolution and the rise of mass production allowed cuteness to be unleashed on the world — toys, books and illustrations could, increasingly, be made easily and cheaply. The exhibition — a world first — examines the enduring appeal of the cute aesthetic amongst adults and asks deeper questions about its allure. For Simon May, a professor of philosophy at King’s College London and author of “The Power of Cute,” kawaii is just part of a story which involves the country of Japan more broadly. The Edwardian artist is credited with increasing the cute appeal of our feline friends by giving them human hobbies and pastimes.
Persons: cuteness, Hattie Stewart, David Parry, , Somerset, Cliff Lauson, Tim Berners, Lee, Claire Catterall, Andy Holden's, Louis Wain —, Andy Holden’s, Joshua Dale, , Isabelle Galleymore, Yumeji Takehisa, Simon May, kawaii, Louis Wain's, Kitty, Japan ”, Setsuko Tamura, Rachel Maclean’s, Maclean, ” May Organizations: CNN, London’s Somerset House, Somerset House, Somerset, Cats, King’s College London, Bethlem, panini, Somerset House Scottish, Locations: London’s, London, Somerset, Tokyo, Japan, ” Japan
Adachi said Japan has yet to see a positive wage-inflation cycle, in which wages and inflation rise together, kick off. The BOJ can start debating an exit strategy only when the chance of such a cycle emerging heightens, he added. But Adachi said the BOJ did not necessarily need to wait until inflation-adjusted wage growth turns positive for it to normalise monetary policy. Hawkish member Naoki Tamura in August signalled a chance of ending negative rates early next year, saying Japan's inflation was already "clearly in sight" of the BOJ's target. With inflation exceeding its 2% target for more than a year, many market players expect the BOJ to end negative rates and YCC next year, with some betting on a move as early as January.
Persons: Issei Kato, Seiji Adachi, Adachi, we're, Naoki Tamura, YCC, Leika Kihara, Takahiko Wada, Chang, Ran Kim, Jamie Freed Organizations: Bank of Japan, REUTERS, Thomson Locations: Tokyo, Japan, TOKYO, MATSUYAMA, Matsuyama
Shokuiku encourages parents and schools to teach kids where their food comes from and how it affects our mind and body. This concept has been an integral part of Japan's culture, and it's a big reason why we're home to some of the world's healthiest children. As a mother raising a young daughter in Japan, here's what Japanese parents do differently to raise happy and adventurous eaters:1. Some preschools have kids harvest vegetables to eat for lunch, while in elementary schools, they learn about the farms that produce vegetables, fish and other foods. While many preschools also provide lunches, homemade bento lunches can play an important role in promoting shokuiku.
Persons: Sagen Ishizuka, Shokuiku, bento, daughter's bento, Yuko Tamura, bok choy Organizations: UNICEF, European Union, OECD Locations: Japan, shokuiku
[1/3] Japan's Prime Minister Fumio Kishida speaks during the leaders talk of the ASEAN-Indo Pacific Forum (AIPF) in Jakarta, Indonesia September 6, 2023. Top government spokesperson Hirokazu Matsuno said the role of defence minister went to Minoru Kihara, a pro-Taiwan politician who has visited the island in the past and belongs to a Japan-Taiwan interparliamentary group. Kihara will also oversee the bolstering of Japan's military as part of a plan to double defence spending over five years by 2027. China claims Taiwan as its own territory and will be sensitive to any shift in Japan's stance on the democratically governed island. "Even if the foreign and defence minister posts change, there won't be any change or impact on Japan's diplomatic policy."
Persons: Fumio Kishida, Adek Berry, Yoko Kamikawa, Hirokazu Matsuno, Minoru Kihara, Kihara, Takashi Kawakami, Shigenobu Tamura, Tim Kelly, Yoshifumi, Sakura Murakami, Chang, Ran Kim, Kantaro, Clarence Fernandez, Stephen Coates Organizations: ASEAN, Pacific, Rights, Liberal Democratic Party, Takushoku University, LDP, NHK, Thomson Locations: Jakarta, Indonesia, Taiwan, Japan, Tokyo, China, East Asia, United States
Another board member, Junko Nakagawa, laid out the conditions for ending negative rates, notably a continued improvement in household confidence. "When we see many people share prospects that wages will keep rising, we may be able to exit (negative rates)." Less than half expect negative rates to end in 2024. There seems to be no consensus within the BOJ board, however, on when or how the bank would dismantle Kuroda's complex policy framework. Ueda said the BOJ could end negative rates if it believed that inflation would sustainably hold above the target.
Persons: Kazuo Ueda, Kim Kyung, Ueda, Tamura, Haruhiko Kuroda, Naoki Tamura, Kuroda, Mari Iwashita, Hajime Takata, Junko Nakagawa, Shinichi Uchida, Leika, Sam Holmes Organizations: Japan, REUTERS, Bank of Japan, Daiwa Securities, Reuters, Thomson Locations: Tokyo, Japan, TOKYO, U.S
A man walks at the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. The central bank would take time to determine whether it can raise interest rates as it waits for evidence that a sustained economic recovery will eradicate Japan's deflationary mindset, he said. "The key is for the economy to keep recovering," Nakamura told a news conference, when asked about the conditions for ending negative interest rates. We therefore need more time before shifting to monetary tightening," he said, adding the key was to determine whether companies' growth expectations were heightening. Markets are divided on whether the BOJ could remove the yield cap before raising short-term rates, ditch both simultaneously, or keep the yield cap when ending negative rates as a precaution against an abrupt rise in long-term yields.
Persons: Issei Kato, Nakamura, Toyoaki Nakamura, Japan's, we're, Naoki Tamura, Kazuo Ueda, Leika Kihara, Christian Schmollinger, Navaratnam, Gerry Doyle Organizations: Bank of Japan, REUTERS, Hitachi Ltd, Thomson Locations: Tokyo, Japan, GIFU, Gifu
Tightening monetary policy before rising prices are accompanied by higher wages would hurt domestic demand and corporate profits, Nakamura said. We therefore need more time before shifting to monetary tightening," Nakamura said in a speech to business leaders in the city of Gifu in central Japan. "Close scrutiny of (economic) conditions and cautious decision-making are required when modifying monetary policy," he said, warning against shifting policy too hastily. Governor Kazuo Ueda has said the BOJ must maintain ultra-low rates until there is more evidence that Japan's inflation can sustainably hit 2% backed by solid consumption and wage growth. Reporting by Leika Kihara; Editing by Christian Schmollinger and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.
Persons: Issei Kato, Nakamura, Toyoaki Nakamura, Naoki Tamura, Kazuo Ueda, Leika Kihara, Christian Schmollinger Organizations: Bank of Japan, REUTERS, Nakamura Overseas, Hitachi Ltd, Thomson Locations: Tokyo, Japan, Gifu
[1/2] Euro and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. Money markets raised their bets on a September rate hike from the ECB, pricing in a 60% chance of a 25 basis-point move. "One key input to arrive at a final assessment is the inflation data this week," he added. The dollar index - which measures the currency against six major peers including the yen and euro - slipped 0.1% to 103.47. INTERVENTION TERRITORYThe dollar rose 0.35% to 146.38 yen .
Persons: Dado Ruvic, Benjamin Schroeder, pare, Charu, Jerome Powell, Naoki Tamura, bitcoin, cryptocurrency, Joice Alves, Kevin Buckland, Tom Westbrook, Miral Fahmy, Alex Richardson Organizations: U.S, REUTERS, European Central Bank, Federal, Reuters, Money, ECB, ING, Fed, Saxo . Money, Bank of Japan, Reserve Bank of Australia, People's Bank of, Thomson Locations: Germany, Spain, North Rhine, Westphalia, NRW, People's Bank of China, London, Tokyo
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON/TOKYO, Aug 30 (Reuters) - The euro eased against the dollar on Wednesday as investors looked to more labour market data in the U.S. and inflation data in the euro zone to provide clues on the path for central banks policies. "One key input to arrive at a final assessment is the inflation data this week," he added. The euro eased 0.2% to $1.0856. The dollar index - which measures the currency against six major peers including the yen and euro - edged 0.1% higher at 103.67. INTERVENTION TERRITORYThe dollar rose 0.38% to 146.43 yen .
Persons: Dado Ruvic, Benjamin Schroeder, pare, Matt Simpson, Jerome Powell, Naoki Tamura, bitcoin, cryptocurrency, Joice Alves, Kevin Buckland, Tom Westbrook, Miral Organizations: REUTERS, Reuters, Money, ECB, ING, Index, Fed, Bank of Japan, Reserve Bank of Australia, People's Bank of, Thomson Locations: TOKYO, U.S, Spain, Germany, Westphalia, NRW, People's Bank of China, London, Tokyo
The remarks are the strongest signal to date by a Bank of Japan (BOJ) policymaker that rising inflation and wages could prod the bank to take bolder steps towards phasing out its radical stimulus. "About a decade has passed since the BOJ began efforts to sustainably and stably achieve its 2% inflation target. For now, the BOJ must sustain monetary easing to scrutinise wage and price developments, said the former commercial banker. "Abandoning negative rates will obviously be among options" if the BOJ were to normalise policy, he said. "Even if the BOJ were to end negative rates, it won't be scaling back monetary easing as long as it can keep interest rates low."
Persons: Issei Kato, Tamura BOJ, KUSHIRO, Naoki Tamura, Tamura, Kazuo Ueda, Shinichi Uchida, Ueda, Leika Kihara, Muralikumar Anantharaman, Sam Holmes Organizations: Bank of Japan, REUTERS, Reuters, Thomson Locations: Tokyo, Japan
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsTOKYO, Aug 30 (Reuters) - The U.S. dollar on Wednesday clawed back some of the previous session's sharp declines as investors looked ahead to more labour market data for clues on the path for Federal Reserve policy. The dollar index - which measures the currency against six major peers including the yen and euro - added 0.09% to 103.64 as of the Asian afternoon. On Tuesday, it had surged to a 10-month peak at 147.375 leading into the JOLTS report, only to end the day with a 0.45% decline. The Aussie dollar dipped as much as 0.46% after the data but eventually shook the data off to trade little changed at $0.64775. The Chinese yuan weakened slightly in offshore trading to 7.3002 per dollar, but remained well above the Aug. 17 low of 7.3490.
Persons: Dado Ruvic, pare, Matt Simpson, Simpson, Naoki Tamura, Jerome Powell, bitcoin, cryptocurrency, we're, Chris Weston, Kevin Buckland, Tom Westbrook, Lincoln, Sam Holmes Organizations: REUTERS, Rights, U.S, Federal Reserve, U.S ., Treasury, Bank of Japan, Money, Fed, Reserve Bank of Australia, People's Bank of, Thomson Locations: People's Bank of China
TOKYO, June 26 (Reuters) - The Bank of Japan should discuss revising its yield curve control (YCC) policy at an early stage, a board member was quoted as saying at a June policy meeting, a summary of opinions at the rate review released on Monday. While the central bank should keep overall monetary policy ultra-loose, it should debate tweaking YCC to improve market function and mitigate its "high cost," the member was quoted as saying. It was the first time the BOJ summary showed a board member explicitly mentioning the need for an early debate of a tweak to YCC. "The Bank should maintain the overall framework of monetary easing for the time being," the member said. At the June meeting, the BOJ maintained ultra-easy monetary policy including its YCC targets - set at -0.1% for short-term interest rates and around 0% for the 10-year bond yield.
Persons: Naoki Tamura, Kazuo Ueda, Leika, Shri Navaratnam, Sam Holmes Organizations: Bank of Japan, Thomson Locations: TOKYO
On May 22, Unger and Lehmann became only the third and fourth deaf people to summit Mount Everest. Deaf climbers on the riseUntil this year, only one deaf person had ever summited Everest – Japanese climber Satoshi Tamura, an alpine skier who succeeded on his third attempt, in 2016. Courtesy Shayna Unger and Scott LehmannClimbing up and overThe Everest environment can make communication difficult for anyone, deaf or not. Unger and Lehmann have been a couple since high school, but they only started climbing together in 2015, when they summited Kilimanjaro. Muhammad Hawari Hashim (far left), a Sherpa guide, Shayna Unger, and Scott Lehmann at Everest base camp.
Persons: Scott Lehmann, Shayna Unger, Unger, Lehmann, Muhammad Hawari Hashim –, , Satoshi Tamura, Hari Budha, Nepalis, he’d, Sherpa, , , Hashim, Muhammad Hawari Hashim, Hawari, they’ve Organizations: YouTube, Malaysian, Federation of, CNN, Sherpas, Gallaudet, Everest Base, Four, Deaf Locations: Everest, Nepal, Afghanistan, Malaysian, South, North America
TOKYO, May 22 (Reuters) - Japanese Prime Minister Fumio Kishida is increasingly certain to call a snap election, perhaps within weeks, as domestic support surges after a G7 summit that drew a surprise visit by Ukraine's president. Although Kishida said on Sunday he was not thinking of dissolving parliament now, experts feel he may not be able to resist as favourable conditions stack up. "For Kishida, Zelenskiy's visit has a unique significance that will help boost his support rating," said Shigenobu Tamura, a political analyst and former LDP staffer. On Friday, it powered to its highest since 1990. read moreCalling an early election could mean less time for the opposition to prepare. An early election might come too soon to guarantee Kishida the LDP presidency even if the party does well, as a threat looms from rising prices, said analyst Atsuo Ito.
Rather, it must come up with ideas" to mitigate the costs and help sustain stimulus, Uchida told an upper house confirmation hearing. The remarks follow those of incoming BOJ Governor Kazuo Ueda on Monday suggesting his preference to spend "plenty of time" if the central bank were to conduct a review of its policy framework. While stressing that it was premature to discuss an exit strategy from ultra-loose monetary policy, Uchida said any exit would involve adjustments in the BOJ's interest rate targets and the level of its balance sheet. "In what order and at what timing the BOJ will make these adjustments will depend on economic and financial developments at the time," Uchida said. The BOJ can tap its experience conducting ultra-loose policy and dealing with market forces, to ensure it can steer a smooth exit regardless of economic conditions at the time, he said.
A former commercial banker, Tamura repeated his view that the BOJ must at some point conduct a comprehensive assessment of its monetary policy framework by weighing the benefits of costs of current ultra-loose policy. "We're now in a phase where we need to scrutinise whether Japan can achieve a positive wage-inflation cycle. Under YCC, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around zero as part of efforts to sustainably achieve its 2% inflation target. Tamura said the BOJ's decision in December was aimed at minimising the side-effects of YCC and making its monetary easing more sustainable, not at tightening policy. With the 10-year bond yield breaching the cap, the central bank said on Wednesday it would conduct emergency bond purchases to fend off a renewed market attack on YCC.
Waiting until next year would have forced the BOJ to combat intensifying market speculation of a near-term policy shift, or act when a deep U.S. recession could hit Japan's economy, they say. "When uncertainty is so high over the outlook for U.S. monetary policy, it probably wants to have a free hand on when next to act." POLITICS KEY TRIGGERThe abrupt timing of Tuesday's move also reflects growing political pressure for the BOJ to shift away from a policy narrowly focused on its 2% inflation target, the sources say. Hours before he met Kishida, Kuroda explained in parliament a framework on how the BOJ could exit ultra-easy policy in the future. Another dovish board member, Asahi Noguchi, also said earlier this month it "won't be surprising" for the BOJ to shift monetary policy.
PUBLIC DISCONTENTAfter a tumultuous year for the world's third-largest economy, Japan's central bank and its leadership face a critical moment. While ruling out the need to ditch the yield cap now, Takata recently said he saw positive developments in wage growth. "The BOJ must start worrying about the possibility of inflation accelerating more than expected," he told Reuters, adding the BOJ may abandon its yield cap as early as next year. Such a reaction was seen in March when the BOJ was forced to pledge unlimited bond buying to defend its yield cap from speculative market attacks. "That's why the BOJ won't provide advance signals and remove the yield cap in a single step."
Markets are rife with speculation that the BOJ will adjust its policy when Kuroda's second, five-year term ends in April. CONTENT WITH STATUS QUOAmid uncertainty over the global outlook and pace of Japanese wage rises, the BOJ is content with maintaining the status quo for now, the sources said. The BOJ expects the inflation rate to slow below its target next year because cost pressure will dissipate. Any chance of a BOJ policy adjustment will disappear if the Fed fails to tame inflation without pushing the U.S. economy into deep recession, analysts say. "But the BOJ will probably find it hard to phase out stimulus if the global economy is in bad shape," he said.
Investors revive wagers on Bank of Japan policy change
  + stars: | 2022-12-08 | by ( Junko Fujita | ) www.reuters.com   time to read: +4 min
TOKYO, Dec 8 (Reuters) - Global investors are short-selling Japanese bonds and driving its other market yields higher, reviving bets that the Bank of Japan will need to tweak its ultra-easy monetary policy sooner rather than later. BOJ Governor Haruhiko Kuroda has repeatedly stressed the need to persist with the bank's unique yield-curve-control policy, which makes Japan an outlier among major central banks aggressively tightening policy to combat inflation. Japan swaps vs yieldsKuroda has said policy will not change until the recent cost-push inflation is accompanied by higher growth in wages. "The central bank may tweak its YCC before March. There should be an event weight it doesn’t have at the moment," says Malcolm, while making clear UBS does not expect any policy change for at least another year.
Bank of Japan keeps ultra-low rates, dovish policy guidance
  + stars: | 2022-09-22 | by ( ) www.reuters.com   time to read: +11 min
Sept 22 (Reuters) - The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, reassuring markets that it will continue to swim against a global tide of central banks tightening monetary policy to combat soaring inflation. "However, we believe that the BOJ will never allocate monetary policy for the FX rate adjustment and will stick to the YCC policy. "The most important thing is how the foreign-exchange rate reacts to that contrast in monetary policy between the U.S. and Japan. It also leaves the impression there will be no change in monetary policy during Kuroda's remaining term." He has said lesser about any merit of the weak yen recently out of consideration towards public sentiment against rising costs of living."
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