The Nikkei 225 Index edges near 15-year highs even as the economy shows few signs of recovery.
Equity purchases by public pension funds and Bank of Japan should underpin Japanese stocks.
On 1 April, the SGX Nikkei Stock Average Dividend Index final settlement value hit an all-time high of 265.12, up 38.39 points from 2013.
More than 60% of SGX Nikkei Index March Futures were rolled into the June contract or future maturities.
Equity purchases by public pension funds and Bank of Japan should underpin Japanese stocks.
On 1 April, the SGX Nikkei Stock Average Dividend Index final settlement value hit an all-time high of 265.12, up 38.39 points from 2013.
More than 60% of SGX Nikkei Index March Futures were rolled into the June contract or future maturities.
Deflation and Weak Output Cast a Shadow over the Land of the Rising Sun
Japan’s industrial production fell more than estimated in February, adding to pressure from lower consumer spending and faltering inflation. Output declined 3.4% month-on-month, according to data from the trade ministry. The median estimate of 28 economists surveyed by Bloomberg was for a decline of 1.9%.
The data is the weakest since June last year and underscores the fragility of Japan’s recovery from a recession last year. Holidays in many parts of Asia that took place in February also curbed exports during the month, further reducing production, according to economists at Mizuho Securities.
Other Asian countries are also suffering from weak exports as the US recovery remains patchy and Eurozone growth stays tepid.
The data is the weakest since June last year and underscores the fragility of Japan’s recovery from a recession last year. Holidays in many parts of Asia that took place in February also curbed exports during the month, further reducing production, according to economists at Mizuho Securities.
Other Asian countries are also suffering from weak exports as the US recovery remains patchy and Eurozone growth stays tepid.
Japanese consumer prices were also flat from a year earlier in February, deepening worries the country is losing the battle against deflation two years after its central bank launched a radical economic-revival programme.
February core consumer-price index touched 0%, the lowest level since May 2013, and far from the 2% target that the central bank had pledged to hit by this spring. The index excludes fresh food prices and effects of a tax increase. The main reason for the price weakness is a drop in global oil prices, something beyond the central bank’s control.
Most BOJ watchers expect the central bank to expand its stimulus programme this year to push ahead with the fight against deflation. Yet even as the BOJ is tilting towards further easing, the government is inching towards another sales tax hike.
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February core consumer-price index touched 0%, the lowest level since May 2013, and far from the 2% target that the central bank had pledged to hit by this spring. The index excludes fresh food prices and effects of a tax increase. The main reason for the price weakness is a drop in global oil prices, something beyond the central bank’s control.
Most BOJ watchers expect the central bank to expand its stimulus programme this year to push ahead with the fight against deflation. Yet even as the BOJ is tilting towards further easing, the government is inching towards another sales tax hike.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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