Tokyo Returns

Tokyo participants return from Tuesday’s holiday and will have to assess the moves observed in wider markets during the interim. In short, fears surrounding a systemic meltdown in the wider global banking sphere have moderated in the time since Monday’s Tokyo close.

• JGB futures pulled back from the post-Tokyo high that was witnessed in the pre-holiday overnight session after the aforementioned moderation in worry surrounding the Credit Suisse situation, while various source reports pointing to background discussions re: shoring up the U.S. regional bank sector have also helped to assuage worry.
• Local headline flow has seen Chief Cabinet Secretary Matsuno outline more than Y2tn of spending (from reserves) as the government looks to battle the impact of the well-documented inflationary impulse (expect much of the focus to fall on energy subsidies).
• The local docket is virtually empty today, with only final machine tool orders data due. That will leave digestion of the gyrations in wider global markets at the fore.