© Reuters. FILE PHOTO: The Japanese government’s nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda speaks during a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. REUTERS/Issei Kato
By Jamie McGeever
(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.
Inflation figures from Singapore top the Asian economic calendar on Monday, kicking off a week in which eyes of the Asia Pacific region – and beyond – will be focused on the Bank of Japan’s first policy meeting under guidance of new governor Kazuo Ueda.
The BOJ’s decision, and Ueda’s press conference on Friday, will round off a week in which attention in Asia also turns to Japanese retail sales, unemployment and Tokyo consumer inflation reports, South Korean GDP and Australian inflation.
This comes as month-end approaches and investors look ahead to the U.S. central bank’s May 2-3 policy meeting. Fed officials are in blackout period, so expectations for the decision will be molded by U.S. data, corporate earnings, signals from the banking sector, and the ebb and flow of debt ceiling concerns.
The advance estimate of first-quarter U.S. GDP growth is out this week, and big tech earnings from Alphabet (NASDAQ:), Microsoft (NASDAQ:) and Amazon (NASDAQ:) are due. Tesla (NASDAQ:) shares fell 13% last week after an earnings miss, the biggest fall in almost a year.
Back in Asia, the BOJ spotlight falls on Kazuo Ueda after a decade of uber-dove Haruhiko Kuroda. It is unlikely that Ueda, on his debut, will bin Kuroda’s super-loose yield curve control(YCC) policy so soon, but that is exactly what Marcel Thieliant at Capital Economics thinks.
Thieliant is probably in a minority of one, but Ueda will likely steer the BOJ in a more hawkish direction sooner or later. Inflation is higher and stickier than officials had expected and many analysts say YCC has distorted the functioning of the bond market.
GRAPHIC:10y yields since Japan adopted ‘yield curve control’ (https://fingfx.thomsonreuters.com/gfx/mkt/dwvkdldekpm/YCC.jpg)
GRAPHIC: Japan core CPI inflation (https://fingfx.thomsonreuters.com/gfx/mkt/zjpqjojwavx/JapanCPI.jpg)
Consumer price inflation data on Friday showed that price growth in March held steady above the BOJ’s target, while a narrow measure of core prices rose at the fastest annual pace in four decades.
Ueda has insisted that the current policy will remain in place for now, damping down prospects of a shift this week. The central bank’s revised inflation and growth forecasts might also give a clue as to when it will tweak or abandon YCC.
While the BOJ is likely to stand pat on Friday, Ueda’s honeymoon will be a short one.
On the data front Monday, the consensus estimate for Singapore annual headline and core inflation in March is for a decline to 5.60% from 6.30% and to 5.1% from 5.5%, respectively.
Here are three key developments that could provide more direction to markets on Monday:
– Singapore inflation (March)
– Hong Kong unemployment (March)
– Taiwan industrial production, unemployment (March)
(By Jamie McGeever; Editing by Diane Craft)
Read More
The Japanese economy is beginning a new chapter and maybe even a new era as Marketmind is here to provide a new way of doing business. Marketmind is designed to help Japanese companies become competitive in the global market.
Marketmind is ideal for any Japanese business or investor looking to find a competitive edge. It helps to automate the process of financial decision making and make quick decisions about where resources are best utilized. It is build with a unique combination of analytics, machine learning, deep learning, artificial intelligence (AI), and cloud computing. This combination of technologies helps to identify trends, formulate strategies, and develop plans to help businesses find pathways to success.
Furthermore, Marketmind is also designed to provide deep and creative insights into how businesses can maximize their profits. Through the utilization of its machine learning algorithms and its AI engine, Marketmind can provide a range of analysis to help businesses gain insights into financial conditions and evaluate the future prospects of their business. Marketmind is quickly becoming the go-to-market model for companies that want to stay ahead of the competition.
By utilizing Marketmind, companies can operate more efficiently, cut costs, and increase market share. This new way of doing business combines the latest in technology with the knowledge and experience of Japan’s top business minds. With the help of Marketmind, Japan is beginning a new chapter and maybe even a new era in business. It is the ultimate solution for businesses that want to stay a step ahead of the competition and proactively manage risks.
