Japan’s strong GDP in Q2 fails to boost yen
2023-08-15
Summary:
Japan’s economy posted its third straight quarterly expansion of an annualized 6% helped by a robust export growth, handily beating market expectations of 3.1% gain.
Japan’s economy posted its third straight quarterly expansion of an annualized 6% helped by a robust export growth, handily beating market expectations of 3.1% gain.
Nikkei 225 index extended gains slightly to trade up nearly 1%, while the Japanese yen pared losses against the U.S. dollar.
However, the yen is still trading around 145 after breaking the key level since for the first time since November 2022.
The yen could push back ‘in the 145-148 range’ while short position ‘will likely rebuild further’ without official intervention, said HSBC on Monday.
On the other side, High longer-end U.S. yields on concerns about the U.S. budget deficit and Treasury supply adds to the dollar’s resilience, according to bank.
Japan’s economy will be slowing again across the second half of the year, said Marcel Thieliant, head of Asia-Pacific at Capital Economics, wrote in a note.
He added that the jump stemmed from the second-largest contribution from net trade in the 28-year history of the current GDP series. That offset a surprise drop in private consumption as well as anemic capital expenditure.
Disclaimer: Investment involves risk. The content of this article is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product.
Funds scoop up UK stocks amid speedy rotation
BlackRock and Allianz see a UK stock market turnaround, hoping an improving economy, lower interest rates, and political stability will help.
2024-07-26
Euro rally against sterling defies macro shift
The euro hovered around a two-week high against the pound on Friday, despite data showing the UK's recovery is outpacing the eurozone's.
2024-07-26
Nasdaq100 Saw Its Worst Day Since 2022
Stocks fell globally on Wednesday on disappointing Tesla and European luxury earnings, while oil prices struggled amid weak demand concerns.
2024-07-25
