Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JAPAN
- In Japan, we have seen that the dynamics of the exchange rate (JPY) has had a significant impact on equities in the past 15 years; a cheaper currency has usually been associated with higher equities (and vise versa, 'Pavlovian' relationship).
- However, in the past year, while Japanese equities have experienced a significant recovery their March 2020 lows, the Yen has remained 'strong' against major crosses as investors have been constantly looking for 'hedges' due to rising uncertainty.
- As liquidity has been one of the major forces behind equities' strength, DM central banks' tapering poses a threat to risky assets.
- The chart below shows the significant divergence between USDJPY and the Nikkei 225 index in the past year.
- Can the divergence persists if DM starts tapering bond purchases?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok